Lay-off and Short-time
Temporary reduction of work or pay due to a lack of business, provided it is written in the contract.
This is a vital tool for seasonal hospitality businesses. However, if a lay-off lasts more than 4 weeks, the employee may be entitled to claim redundancy. You cannot impose this unless it is explicitly in their employment contract.
Frequently Asked Questions
If an employee has been on lay-off or short-time for 4 consecutive weeks (or 6 weeks within a 13-week period), they can give you notice of their intention to claim redundancy. Unless you can guarantee them "counter-notice" (work commencing within 4 weeks and lasting for 13 weeks), you are obliged to pay them their statutory redundancy lump sum.
You can place staff on "Lay-off" (no work, no pay) if you have a specific clause in your contract of employment allowing for it, or if it is established custom and practice in your trade. Without this contractual clause, an unpaid lay-off is technically a breach of contract and a deduction of wages. Staff on lay-off may also be entitled to claim a Redundancy payment if the situation lasts more than 4 weeks.