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Coronavirus

Coronavirus: Lay-offs and short-time working

In some situations, an employer might need to close down their business for a short time, or ask staff to reduce their contracted hours.

If the employer thinks they’ll need to do this, it’s important to talk with staff as early as possible and throughout the closure.

Unless it says in the contract or is agreed otherwise, they still need to pay their employees for this time.

Employees who are laid off and are not entitled to their usual pay might be entitled to a ‘statutory guarantee payment’ of up to £29 a day from their employer.

This is limited to a maximum of 5 days in any period of 3 months. On days when a guarantee payment is not payable, employees might be able to claim Jobseekers Allowance from Jobcentre Plus.

Using holiday

Employers have the right to tell employees and workers when to take holiday if they need to. For example, they can decide to shut for a week and everyone has to use their holiday entitlement.

If the employer does decide to do this, they must tell staff at least twice as many days before as the amount of days they need people to take.

For example, if they want to close for 5 days, they should tell everyone at least 10 days before.

This could affect holiday staff have already booked or planned. So employers should:

  • explain clearly why they need to close
  • try and resolve anyone’s worries about how it will affect their holiday entitlement or plans

Source ACAS March 2020