Lay-offs and short-time working
A lay-off is where an employer temporarily suspends an employee’s work and pay, due to a downturn in business or reduced demand.
Similarly, short-time working is where employees are laid off for a number (but not all) of their contractual days each week, or for a number of hours during a working day. This is also typically a temporary solution, aiming to avoid redundancies.
Being laid off and short-time working are different to being made redundant, when an employee is dismissed permanently because of a redundancy situation.
Employers would only need to do this for individuals with the legal status of employee, as they will have a right to guaranteed hours.
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Contractual rights
Employers can lay someone off where there is a written contractual right, so the first thing you need to do is find your contract and see what is says about this.
On rare occasions, there may be an agreement covering lay-offs between an employer and a trade union (like UNISON), or an agreement made by a national body (like the NHS Staff Council). Such an agreement has contractual force, but only if it is incorporated into the individual employee’s contract of employment.
What if it’s not in my contract?
The ability of your employer to force lay-offs may also be possible if they can clearly evidence that they’ve been using these over a long period of time and it’s their normal practice. You would almost certainly be aware of this practice already in your workplace if this was the case.
But my employer’s now saying they want to change my contract?
This could be done by individual agreement with you. But you don’t need to agree a change just because your employer asks you!
A change could also happen with the collective agreement of a recognised trade union, or through a process known as dismissal and re-engagement. Either of these would require significant consultation with you and your colleagues first.
However, the Employment Rights Act 2025 intends to make it automatically unfair to dismiss an employee for refusing to agree to a crucial change to their hours and pay (as well as other terms) in the employment contract.
If an employee agrees to a permanent change to their contract, the employer must confirm in writing and within one month, what change to the contract was agreed. It is also advised to request this where the change is temporary.
Will I be paid during a lay-off?
Again, it’s all about your contract. Employees can be laid off without pay where there is a specific term in their contract which allows the employer to do this.
If you are laid-off without pay, you might be entitled to what’s called a ‘statutory guarantee payment’ from your employer. Unfortunately, this isn’t very much.
The current maximum payment is just £39 a day for five days in any three months (ie £195). If you usually earn less than £39 a day, you should receive your usual daily rate. However, if you’re part-time, this may be reduced and worked out proportionally.
In order to receive guarantee pay you must have been employed continuously with the same employer for at least one month, make sure you are available to work, not refuse any reasonable alternative work and not have been laid off because of industrial action.
On days when a guarantee payment isn’t payable, it may be possible to claim Jobseekers Allowance through your local Jobcentre Plus office.
What if the lay-off goes on for a long time?
There is no time limit on how long you can be laid off or put on short-time working. Again, it will depend on what is agreed in the contract of employment.
You can claim a redundancy payment from your employer if the lay-off or short-time working, runs for a long period, but this will end your employment. A long period means:
- four or more weeks in a row.
- six or more weeks in a 13-week period (where no more than three are in a row).
To claim this, you must give your employer written notice in advance that you want to make a claim, and you must have worked for the employer for two years or more. This can be a fairly basic letter. Contact your UNISON rep or UNISON branch if you want advice on this.
External advice and support
Legal disclaimer
The information contained within this article is not a complete or final statement of the law and is based on the laws of England, Wales, Scotland and Northern Ireland.
While UNISON has sought to ensure that the information is accurate and up to date, it is not responsible and will not be held liable for any inaccuracies and their consequences, including any loss arising from relying on this information. If you are a UNISON member with a legal problem, please contact your branch or region as soon as possible for advice, or for non-employment matters call UNISONdirect.