Lay-off and short-time working

Lay-off and short-time working are different

A lay-off means an employee has no work for at least one complete working day. Short-time working means they work less and receive less pay. Both are intended as temporary responses to a shortage of work, rather than dismissals. The GOV.UK overview explains the distinction and the possible route to redundancy.

Use the right label in letters and payroll records. Record the affected working days, hours offered and pay due, so there is no need to reconstruct the arrangement later.

Pay cannot simply be switched off

Employees should receive full pay unless unpaid lay-off or reduced pay is authorised by their contract, a collective agreement, a well-established workplace arrangement or a change they have agreed. The Acas guidance sets out the recognised bases and recommends confirming temporary changes in writing.

On a complete workless day, an eligible employee may still be due statutory guarantee pay. Check the current guarantee-pay rules for eligibility and the live amount rather than copying a rate into a policy.

Give the temporary measure an exit

Explain why the change is needed, who is affected, how selection was made and when it will be reviewed. Consider alternatives with employees and apply the approach consistently. Continue to track holiday accrual and any contractual benefits.

Longer spells can let an eligible employee claim redundancy pay through a formal notice process. Great Britain and Northern Ireland have separate procedures and deadlines, so follow the current official route. Northern Ireland employers should use the nidirect temporary lay-off guidance before responding to a claim.