What's the difference?
Lay-off is where your employer does not have enough work for you and tells you to stay at home as a temporary measure. If you are off work for at least one complete working day, this is a lay-off.
Short-time working is where your employer does not have enough work and cuts your hours or sends you home early as a temporary arrangement.
Can your employer do this?
Provided your employer pays you in full they can send you home on lay-off and short-time. Take advice from your Usdaw rep if it affects your earnings.
Your employer can cut your pay if:
- Your contract says they can in the circumstances.
- You agree.
- There is a collective agreement with the Union to do so which is incorporated into (becomes part of) your contract.
In difficult times lay-off and/or short-time working may be the right thing to do to support the business and save jobs.
What is statutory guarantee pay?
Statutory guarantee pay is the minimum you should be paid when laid-off. To get statutory guarantee pay you must:
- Have been employed continuously for at least one month - this includes part-time workers.
- Reasonably make sure you are available for work.
- Not refuse any reasonable alternative work, including work that is not in your contract.
- Not have been laid-off because of industrial action.
Guarantee payments are made for a maximum of five days in any rolling period of three months. After that time you should get them for another five days. If you normally work fewer than five days a week, you are paid for the number of days in your normal working week.
You will receive your daily rate or the upper limit of £25 from April 2014, whichever is less.
On days on which a guarantee payment is not payable, you may be able to claim Jobseekers Allowance and should contact your local Jobcentre.
If you are placed on short-time working you may be able to claim Jobseekers Allowance for the balance of the hours you do not work - contact your Jobcentre for advice.
For more information on guarantee payments see the Government's website: https://gov.uk/lay-offs-short-timeworking/guarantee-pay
Can I claim redundancy?
If you are on short-time or laid-off you may be able to make a redundancy claim.
Notice of Intention to Claim (NIC) procedure:
You can give your employer written notice of an intention to claim (NIC) a redundancy payment, if you are:
- Laid-off without pay; or
- Put on short-time working and receive less than half a week's pay.
And that lasts for:
- Four consecutive weeks; or
- Six weeks in a period of 13 weeks. This will depend on the terms specified in the contract.
This is a complex statutory procedure - more information can be found on the gov.uk website: https://www.gov.uk/lay-offs-short-timeworking
Contact your Usdaw rep for advice about what to do in your workplace.
What is a wrongful lay-off/short time?
1. Where there is no contract term or agreement
Consult your Usdaw rep as this is likely to be a breach of contract. Some matters to consider are:
- Accept it and claim Guarantee Pay/Jobseekers Allowance
- Submit a grievance letter to prevent affirmation
- Unlawful deduction of wages claim
- Resignation and constructive dismissal
2. Unreasonable or indefinite lay-off/short-time to avoid having to meet redundancy pay etc
Consult your Usdaw rep to determine a collective strategy including NIC procedure.
3. Where you are being singled out unfairly:
- Consult your Usdaw rep and consider the options:
- Accept the situation and claim Guarantee Pay
- Submit a grievance
- Unlawful deduction of wages claim
- Resignation and constructive dismissal
- Discrimination claim
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