Q&As

If the employee agrees to work fewer hours for a period of time and the employer does not have an existing contractual right to lay off or implement short-time working, can the employee still claim a statutory redundancy payment?

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Published on LexisPSL on 26/03/2020

The following Employment Q&A provides comprehensive and up to date legal information covering:

  • If the employee agrees to work fewer hours for a period of time and the employer does not have an existing contractual right to lay off or implement short-time working, can the employee still claim a statutory redundancy payment?

An employee may claim a statutory redundancy payment without being dismissed in one of two situations:

  1. where the employee is ‘laid-off’ by the employer, ie when the employer temporarily shuts down its operation because it cannot find any or enough work for the employees

  2. where an employee is put on short-time working—short-time working occurs where the employer requires the employee to do less than their full contractual hours and the employee receives less pay as a result

In the circumstances to which you refer, it would seem that the employer intends to implement a period of short-time working.

Where there is no existing contractual right for the employer to impose this, the express informed consent of the employee will be needed. The imposition of a period of short-term working without a contractual right to do so, or without the employee’s consent, is likely

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