Lay off

If you are off work for at least day because your employer has told you not to turn up for work because they have no work for you then you have been laid off.

Whilst your employer is entitled to tell you not to turn up for work if they have no work for you they can’t refuse to pay you unless either your contact entitles them not to, or it is established custom and practice in your industry for them not to, or you have agreed to be laid off without or on part pay.

If the lay off is not the result of industrial action and you have been employed by your employer for at least one month and you remain available for work and do not refuse any reasonable alternative work which your employer offers you then your employer must pay you statutory guarantee pay.

Guarantee payments are made for a maximum of five days in any three month period. The amount of the guarantee payment is calculated by reference to the number of your usual working hours and your average hourly pay. The guarantee payment is currently capped  at £21.50 per day. When the guarantee payments run out you may be entitled to claim state benefits whilst you are laid off.

If your employer is not entitled to lay you off without pay then you have the right to bring a claim for compensation you may also be entitled to bring a claim that you have been constructively dismissed. If you have been laid off for more than 4 weeks you may be able to claim redundancy. If your employer dismisses you for asserting your right to guarantee pay then you will be entitled to bring a claim for unfair dismissal.

This is a complicated area of law and it is important that you take expert advice to be sure that you know your rights. Our employment specialists will be happy to run through these with you and to advise you whether you are able to bring a claim against your employer.

Strict time limits apply to tribunal claims so its important that you contact us now.