Redundancy payments for lay-offs and short time
Redundancy payments for lay-offs and short time

The following Employment guidance note provides comprehensive and up to date legal information covering:

  • Redundancy payments for lay-offs and short time
  • Interaction with right to a guarantee payment
  • Lay-off generally
  • The definition of a statutory lay-off
  • Short time
  • Claiming a redundancy payment
  • Employee’s notice of intention to claim
  • Employee must terminate the contract
  • Employer's counter-notice
  • Death of employer or employee
  • more

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 summary, a statutory redundancy payment is payable where:

  1. there is a period of ‘lay-off’ (see: Lay-off generally and The definition of a statutory lay-off below) or Short time

  2. the period of lay-off or short-time is for the prescribed period (see: Claiming a redundancy payment below)

  3. the employee has given notice of their intention to claim the payment in writing, within the required timeframe (see: Employee’s notice of intention to claim)

  4. the employee terminates the contract of employment by giving the requisite notice (see: Employee must terminate the contract below)

  5. the employer does not give a counter-notice, stating that there is reasonable expectation of a resumption of normal working (see: Employer’s counter-notice below)

  6. the employee is not dismissed by the employer (in which case the employee may be entitled to a statutory redundancy payment anyway)

Effectively, this means that, where these requirements are complied with, an