Being laid-off: Your employment rights
Being laid-off is not the same as being made redundant or being sacked. Usually, it means your employer doesn't have enough work for you temporarily and asks you not to come in for a while. Read on to find out what your employment rights are.
"Your employer must have an express or implied power to lawfully reduce your pay"
What is a lay-off?
According to ACAS, a lay-off means employees are not provided with work by their employer for a temporary and usually short-term period. If you're off work for a full day or more, this is a lay-off. Directgov points out that in many cases you have the right to remain on full pay.
In some cases, your contract may have a clause in it saying you will have deductions made from your pay. An employer can only make deductions from your pay if this clause exists, so make sure you check your contract if you're being laid-off.
When can I be laid-off?
When there is:
- An express contractual right agreed between you and your employer.
- An agreement covering the issue between the company you work for and the union.
- A national agreement for the industry that your employer follows.
These agreements must be included in your employment contract to apply. Your employer might also have an implied right if they can show by clear evidence that the right to lay people off has been established over a long period by custom or practice.
If I'm temping, can I still be laid-off?
If you're temping, you have fewer rights than if you're classed as an employee. You may be told not to come in, but you don't have the right to pay or the right to expect the same job back, unfortunately. Make sure you communicate clearly with your temping agency and bosses at work and encourage them to do the same as you – during a stressful time, people get easily distracted.
Do I have any right to payment while I'm laid-off?
Not if there is a specific term in your contract allowing your employer to lay you off without pay. When you are laid off, you might be entitled to a statutory guarantee payment from your employer, limited to a maximum of five days in any period of three months. The daily amount is subject to an upper limit which is reviewed annually. On days when a guarantee payment isn't payable, you might be able to claim Jobseekers Allowance and should contact your local Jobcentre office about eligibility.
How long can a lay-off last?
This will depend on the terms specified in the contract. However, you may, in certain circumstances, give your employer written notice of your intention to claim a redundancy payment. It depends on the amount of time you've been laid-off for.
What about short-time working?
Short-time working is when you are asked to work less than a full week, meaning your hours are cut.
ACAS says that your employer must have an express or implied power to lawfully reduce your pay. Normally you and your colleagues, or your union representative should have agreed to short-time working as an alternative to redundancies. If you're placed on short-time working you might be able to claim Jobseekers Allowance for the balance of the hours you don't work – you can get advice on this from your local Jobcentre.
Can I claim redundancy payments because of layoff or short-time working?
You can claim redundancy but only if the situation meets certain criteria:
- If you're laid-off and receiving no wages for four consecutive weeks, or for six non-consecutive weeks within a 13-week period, because of a shortage of work
- If you're put on short-time working and receiving less than half a week's pay for four consecutive weeks (or for six non-consecutive weeks within a 13-week period) because of a shortage of work
Photo by volunteer photographer Kirsty Heslop
Updated:09/06/2010
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