An employee is 'laid off' when the employer can't provide work of the workers normal type due to a reduction in business, the employee may be put on 'short time' if there was enough work for part of the working week and be laid off for the rest of the week.
Laying off employees is a useful alternative to redundancies.
An employer can only lay off an employee if the contract of employment specifically allows it or the employer comes to an agreement with the employee, preferably in writing, after fully explaining the situation and exactly what the employee is consenting to. A breach of contract, by the employer, is committed if the lay off is just imposed regardless of the above.
The employee is under no obligation to agree to anything if it is not in the contact of employment, however, it may be that the only alternative to laying off is redundancy, if employed for two years or more, or termination.
If an employee is laid off without pay or receives less than half a weeks pay whilst on short time for either a period totaling six weeks within a thirteen week period of for four consecutive weeks they may claim for a redundancy payment and then give the employer written notice of termination.
The employer may refuse the claim on the grounds that they expect to be able to provide thirteen weeks of full normal employment. Should this not be accepted an Employment Tribunal must be asked to make the decision.
An employee has the statutory right to receive a guaranteed payment per day for the contracted number of work days in a week, to a maximum of five days, within any three month period where no work was provided and were laid off. The guaranteed amount includes any payments made as a result of the contract of employment terms.
The following are excluded from receiving guaranteed payments and are employees who:
- have less than one months service
- are on an un-extended fixed term contact of three months or less
- have refused a suitable alternative employment
- are unavailable for work
