Guarantee payments and suspension on medical grounds

Produced by Tolley in association with Sarah Bradford
Employment Tax
Guidance

Guarantee payments and suspension on medical grounds

Produced by Tolley in association with Sarah Bradford
Employment Tax
Guidance
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Guarantee payments

An employee is entitled to a guarantee payment for any workless day. This is a day throughout which he would normally be required to work but his employer does not provide him with work because:

  1. it does not need as much work done of the kind the employee is employed to do (eg due to a lack of orders)

  2. something happens which affects the work he is required to do (eg a threatened power cut)

ERA 1996, s 28

A ‘day’ is the period from midnight to midnight except where a period of work extends over midnight into the next day, in which case the work is treated as falling wholly within the day (from midnight to midnight) in which the majority of work was done.

In general, the right to a guarantee payment only arises after an employee has been continuously employed for one-month ending with the day before the workless day. An employee is not entitled to a guarantee payment where:

  1. the failure to provide

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Sarah Bradford
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Director at Writetax Ltd


Sarah Bradford BA(Hons), ACA, CTA (Fellow) is the director of Writetax Ltd, a company providing tax technical writing services on tax and National Insurance, and also of its sister company, Writetax Consultancy Services Ltd. Sarah writes widely on tax and National Insurance and is the author of several books.

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  • 16 Aug 2023 11:30

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