Lay-off and short-time working

Author: Fiona Cuming

Updating authors: Max Winthrop and Zuraida Curtis

Summary

• It is an implied and express term of every employee's contract of employment that their employer will pay them wages. (See Overview)
• The law provides definitions of lay-off and short-time working. (See Meaning of lay-off and short-time working)
• Employers can impose a lay-off or short-time working arrangement only if there is an express or implied contractual right to do so. (See Contractual right to lay off or put on short-time working)
• Where there is no contractual right, employers must seek the employee's express consent to a period of lay-off or short-time working. (See No contractual right - express consent necessary)
• An employer will be in breach of contract if it lays off employees or puts them on short-time working without the contractual right to do so or without their express agreement. (See Imposing lay-off or short-time working unilaterally - consequences)
• An employee who has been laid off continues to be employed but the employer's contractual obligation to provide work or to pay salary is suspended. (See Operation of the employment contract during lay-off)
• An employee who is laid off or on short-time working may be entitled to claim a redundancy payment. (See Redundancy payments)
• Subject to satisfying the eligibility conditions, an employee must notify their employer that they intend to claim a redundancy payment. (See Notice of intention to claim)
• An employer must serve a counter notice if it is contesting its liability to pay the employee a redundancy payment. (See Counter notice)