{"id":1854,"date":"2022-01-17T05:54:40","date_gmt":"2022-01-17T05:54:40","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=1854"},"modified":"2022-06-08T07:46:50","modified_gmt":"2022-06-08T06:46:50","slug":"lay-off-employee","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/employment\/lay-off-employee\/","title":{"rendered":"When Can I Lay Off an Employee in England and Wales?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">As an employer, you may have experienced times where your work is quiet or, in the worst-case scenario, almost non-existent. Where there is a temporary change to your workflow, it can cause problems for you, as you have little or no work to give to staff. However, you may have options during these circumstances, one of which is to lay off staff. However, a temporary lay-off should be the last resort, and you are required to consider other options before choosing this. When you decide to lay off staff, you should be aware of the rules.\u00a0<\/span><span style=\"font-weight: 400;\">This article will explain to you when you can lay off your employees. It will explain what a lay-off is and the rules associated with this, such as any entitlement to pay.<\/span><\/p>\n<h2>What is a Lay-off?<\/h2>\n<p><span style=\"font-weight: 400;\">Where you do not have enough work for your employees, you have the right to ask them for a temporary period not to come to work. Where you ask your employees to do this for one working day or more, it is considered a lay-off.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You should only lay off your employees as a last resort, potentially to avoid redundancies. Before deciding upon a lay-off, you should consider other courses of action that you must discuss with your employees. These are to:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">take <a href=\"https:\/\/legalvision.co.uk\/employment\/holiday-leave-entitlements\/\">holiday leave<\/a>;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/legalvision.co.uk\/employment\/considerations-working-from-home\/\">work from home<\/a>;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">work flexibly, or<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">go on unpaid leave.<\/span><\/li>\n<\/ul>\n<h2>When Can an Employer Lay Off Their Employees?<\/h2>\n<p><span style=\"font-weight: 400;\">You can only lay off your employees under certain circumstances. These are where either:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">the potential to be laid off is in your employee\u2019s employment contract;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">there is clear evidence that lay off is custom and practice in your business;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">in your industry, there is a national agreement to carry out lay-offs if required;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">you agree with a trade union that lay-offs can take place; or\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">you and your employees have agreed that you can change their employment contract terms.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">When you select your employees for a lay-off, you must ensure that you <a href=\"https:\/\/legalvision.co.uk\/employment\/employment-discrimination\/\">do not discriminate<\/a> when doing so. You must not discriminate based on the nine characteristics protected by law:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">race, which includes colour, nationality, ethnic origin and national origin;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">sex;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">disability;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">pregnancy and maternity;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">age;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">religion or belief;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">sexual orientation;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">gender reassignment; and<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">marriage or civil partnership.\u00a0<\/span><\/li>\n<\/ul>\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    <script>\nvar 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It can be anything from one day to as long as you deem it necessary. However, it is also determined by your employees\u2019 <a href=\"https:\/\/legalvision.co.uk\/employment\/importance-employment-contracts\/\">employment contract<\/a> terms. However, where your employees are laid off for:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">four consecutive weeks; or<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">for six weeks over a duration of 13 weeks,<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">they are entitled to apply for redundancy and also redundancy pay.<\/span><\/p>\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400;\">You should note that whilst your employees are laid off, they are still entitled to holiday leave, which will continue to build up.<\/span><\/p>\n<\/div>\n<h2>Are Employees Paid During a Lay-off?<\/h2>\n<p><span style=\"font-weight: 400;\">You may decide to pay your employees full pay during a lay-off. Their contract will state whether they receive full pay or reduced pay. This is your own guarantee pay scheme.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You can also detail within your employees\u2019 employment contracts that you can call an unpaid lay-off. However, regardless of this, all employees are entitled to statutory guaranteed pay during a lay-off, even if your employment contracts state that they are subject to an unpaid lay-off. Where your employee carries out some work during the working day, they are not entitled to statutory guarantee pay.<\/span><\/p>\n<h3>Statutory Guarantee Pay<\/h3>\n<p><span style=\"font-weight: 400;\">Statutory guarantee pay is a legal lay-off pay for your employees where you do not have your own guarantee pay scheme in place. It is a maximum of \u00a330 a day. This amounts to \u00a3150 per week for three months. For your employees who work part-time, their rate is prorated.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your employees are entitled to statutory guarantee pay where they:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">are legally classed as an employee;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">have continuously been your employee for at least one month;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">reasonably ensure they are available should you require them to work;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">do not reject any reasonable alternative work, regardless of whether or not you have stated this work in their employment contract; and<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">are not laid off as a result of industrial action.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">It is a legal requirement to pay your employee\u2019s statutory guarantee pay. If you do not, it is considered an unlawful deduction from your employees\u2019 wages, and they may claim you at an employment tribunal. Your employees may also be entitled to benefits whilst on a lay-off.<\/span><\/p>\n<h2>Can Employees Work Elsewhere When They Are Laid Off?<\/h2>\n<p><span style=\"font-weight: 400;\">If your employees\u2019 employment contract allows, they can carry out other work for another employer while laid off. However, if they do, they must:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">receive your agreement regarding the work first;<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">ensure the work is not with a competitor; and<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">ensure they are available to you at the end of the lay-off.<\/span><\/li>\n<\/ul>\n<h2>Key Takeaways<\/h2>\n<p><span style=\"font-weight: 400;\">As an employer, you are responsible for giving your employees work to carry out. However, if you are unfortunately in a position where you have little or no work for your employees to carry out, you may have the right to lay off your employees. This will depend upon, for example, what their employment contract states or whether there is a national industry agreement to carry out a lay-off. Where you do lay off staff, rules apply to this, for example, in terms of guarantee pay. The minimum you are legally required to do is provide them statutory guarantee pay where they qualify for this. If you do not, you could face an employment tribunal.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you need help understanding when you can lay off your employees in England and Wales, our <\/span><a href=\"https:\/\/legalvision.co.uk\/employment-lawyers-lp\/\"><span style=\"font-weight: 400;\">experienced employment lawyers<\/span><\/a><span style=\"font-weight: 400;\"> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents for a low monthly fee. So call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our<\/span>\u00a0<a href=\"https:\/\/legalvision.co.uk\/membership\"><span style=\"font-weight: 400;\">membership page<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2>Frequently Asked Questions<\/h2>\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1642398766167\"><strong class=\"schema-faq-question\">What is a lay-off?<\/strong> <p class=\"schema-faq-answer\">A lay-off is where you ask your staff to go home for a minimum of one day as there is not enough work for them to carry out.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1642398777149\"><strong class=\"schema-faq-question\">Can all employers lay off their employees?<\/strong> <p class=\"schema-faq-answer\">Not all employers are entitled to lay off their staff when situations require it. You can only lay off your staff where it is permitted, which could be, for example, where it is included in your employee\u2019s employment contract.<\/p> <\/div> <\/div>\n","protected":false},"excerpt":{"rendered":"<p>As an employer, you may have experienced times where your work is quiet or, in the worst-case scenario, almost non-existent. Where there is a temporary change to your workflow, it can cause problems for you, as you have little or no work to give to staff. However, you may have options during these circumstances, one<a href=\"https:\/\/legalvision.co.uk\/employment\/lay-off-employee\/\">Continue reading <span class=\"sr-only\">&#8220;When Can I Lay Off an Employee in England and Wales?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13326,"featured_media":533,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"1386,784,2648,2350,1707,2491","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[35],"tags":[20,21,332,402,403],"class_list":["post-1854","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment","tag-small-business","tag-medium-business","tag-discrimination","tag-lay-off","tag-entitlement-to-pay"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>When Can I Lay Off an Employee in England and Wales? 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