Lay-offs and Short-time Working

Lay-offs and short-time working are common ways to reduce payroll costs.  For short periods of time they can help avoid the need to make compulsory redundancies.

While these measures can be useful, they should only be used if they are specifically permitted by the contract of employment.  Otherwise, lay-offs or short-time working can entitle the employee to resign and bring an expensive claim for constructive dismissal if the measures taken reduce employees' pay.

You should also note that where an employee has been laid-off or kept on short-time working either for:

• four or more consecutive weeks; or
• for a total of six weeks (no more than three being consecutive) in any period of 13 weeks,

they have the right to claim a redundancy payment.

For advice on whether you have the right to lay-off employees or use short-time working, advice on how to introduce such a right into the employment contract, or to discuss lay-offs/short-time working generally please contact Mark Daubney on 01482 324591 or via email mtd@sjplaw.co.uk.

Back to news listing