Back
Get in Touch Menu

Laying off staff

06 November 2008

With an uncertain spell in prospect, a number of clients have asked for advice on laying off staff.

One, for example, runs a seasonal business and needs to reduce overheads for a short period in January but does not want to part with capable, experienced staff. Lay offs can be used as a means of riding out such short-term difficulties.

Most employees have no legally-enforceable right to work but employers have no general right not to pay staff because there is no work. If you lay off an employee without pay (unless you have a contractual right to do so) you are in breach of contract. The employee may bring a claim for the breach or for unlawful deduction from wages, or may resign and claim that your action amounted to a dismissal.

As long as the employee agrees to alter the contract terms so that the lay-off is by mutual agreement (eg where the only alternative is redundancy) then you will not be in breach. You should note though that this does not necessarily mean that you can lay the employee off unilaterally without pay in the future: it is likely to be just for this occasion.

If employees agree to the lay-off (or if you decide to take the risk and proceed without their agreement) they will be entitled to a statutory guaranteed payment. Should a lay-off last for four consecutive weeks, or six weeks in a 13-week period, an employee can claim a redundancy payment. Please note, there are particular rules about the notice that must be given. We will be happy to advise on the relevant rules.

As always, if you need commercial and pragmatic legal advice, we’re here to help so please get in touch.

Contact us

Disclaimer: All legal information is correct at the time of publication but please be aware that laws may change over time. This article contains general legal information but should not be relied upon as legal advice. Please seek professional legal advice about your specific situation - contact us; we’d be delighted to help.
Contact
Jenny Hawrot LLB (Hons)
Partner
View profile
Related services
Share this article
Resources to help

Related articles

Employment status – the importance of getting it right

Employment & business immigration

When an individual provides services to a business, it is important for all concerned to understand the nature of that relationship. The individual could be one of three things: an…

Simon Pathé FCILEx
Partner, chartered legal executive

Equal pay claim: Thandi and others v Next Retail Limited

Employment & business immigration

Over 3,500 predominantly female retail consultants employed by Next Retail Limited (Next) collectively brought an equal pay claim against their employer. The claim was on the basis that the work…

Hifsa O'Kelly LLB (Hons)
Senior associate, solicitor

Fertility treatment & the workplace: Understanding employee rights

Employment & business immigration

In recent years, there has been a significant increase in individuals seeking fertility treatment. This trend includes not only heterosexual couples but also same-sex couples, single mothers, and those opting…

Klára Grmelová MGR (LLM Czech)
Solicitor
Contact us