Lay Offs
If there is a down-turn in business, unforeseen circumstances or reasons beyond the employer’s control consideration may have to be given to putting some or all of the work-force on short-time or laying them off altogether.
However, this can only be done if there is appropriate provision in the contract of employment or each employee agrees - preferably in writing - to the arrangement. You can obtain relevant precedents from PBS.
Furthermore, sound financial reasons are essential to justify putting employees on short-time or laying them off. Also it is vital to communicate with the workforce before action is taken.
Most laid-off employees are entitled to a guaranteed payment for up to five workless days in any three month period. There is a statutory minimum figure per day or the normal daily rate of pay if less than this sum.
Excluded from guaranteed pay are:
1. Those with less than one month’s service
2. Those on fixed term contracts of less than three months duration
3. Those who unreasonably refuse suitable alternative employment for workless days
4. Those who unreasonably fail to be available for work when required
To avoid the risk of redundancy claims care must be taken where the lay-off or short-time working is likely to continue for four consecutive weeks or for a total of six weeks in any three month period. In this scenario contact PBS for urgent advice.
All PBS information sheets are designed to provide the detail you need to implement best business and employment practices. They are not a detailed commentary on the current law and where advice is needed in a specific case you should contact PBS for expert consultation.
Lay-offs