Lay-off & Short-time Documents and Procedure Templates
These documents are designed to help employers deal with temporary lay-off and short-time working where there is a reduction in available work.
They include guidance notes, letters, and contractual documents for use where an employer needs a temporary alternative to redundancy.
When to Use Lay-Off and Short-Time Working Documents
Use these documents where employees may need to be laid off for a period or moved onto reduced hours or days.
A lay-off arises where an employer does not provide work on a day the employee would normally be required to work. Short-time working arises where the employer reduces the employee’s working days and/or hours.
Contractual Right to Lay Off Employees or Introduce Short-Time Working
Lay-off or short-time working can only be imposed where there is a contractual right to do so.
If there is no such right, the employer will need the employee’s express consent before introducing either arrangement.
Lay-Off and Short-Time Working as Alternatives to Redundancy
Lay-off and short-time working are often used where employers are facing reduced demand or financial pressure and want to avoid immediate redundancies.
These measures are intended to be temporary. If the situation does not improve, redundancy may be the next step.
Lay-Off Letters, Short-Time Working Notices, and Contract Documents Included
- guidance on lay-off and short-time working;
- meeting and notice letters;
- letters to bring the arrangement to an end; and
- contractual wording, including a clause, variation deed, and employment contract.
Lay-off & Short-time Documents and Procedure Templates is part of Employment. Just £38.50 + VAT provides unlimited downloads from Employment for 1 year.
Frequently Asked Questions
Can I lay off employees or put them on short-time working without their agreement? +
Only if their employment contract already contains an express right for you to do so. Without that contractual right you must obtain each employee's explicit consent before imposing a lay-off or short-time arrangement. Doing so without authority is likely to amount to a breach of contract and unlawful deduction of wages. The Simply-Docs Lay-Off and Short-Time Working Clause and the Lay-Off and Short-Time Variation Deed can help you establish or introduce the necessary contractual right.
My employment contracts have no lay-off clause. How do I introduce one before work runs out? +
You have two options. First, you can ask employees to agree a temporary variation to their contracts for the immediate period of reduced work. Second, you can add a permanent lay-off and short-time clause for the future. Both approaches require the employee's written agreement. The Simply-Docs Lay-Off and Short-Time Variation Deed is designed for a consensual contractual variation, while the Lay-Off and Short-Time Working Clause provides standard wording to insert into contracts going forward. The guidance notes explain when each document is appropriate.
What letters do I need to send when laying off staff or putting them on short-time working? +
Good practice is to hold a meeting with affected employees first, then follow it with written notice. The Simply-Docs folder includes a Lay-Off and Short-Time Meeting Letter (to invite employees to the initial meeting), a Lay-Off Notice Letter (to confirm the lay-off) and a Short-Time Working Notice Letter (to confirm reduced hours). Separate termination letters are included for when the arrangement ends. The guidance notes set out the recommended sequence for using these documents.
How long can I keep employees on lay-off or short-time working before they can claim redundancy? +
There is no statutory time limit on lay-off or short-time working. However, once an employee with two or more years of continuous service has been laid off or on short-time working for four or more consecutive weeks, or six or more weeks in any thirteen-week period, they gain the right to serve written notice claiming a statutory redundancy payment. You then have seven days to respond. You can avoid paying if you can genuinely guarantee at least thirteen consecutive weeks of normal full-time work starting within four weeks of receiving the notice. The Simply-Docs guidance notes cover this statutory procedure.
What is the difference between a lay-off and short-time working, and does it matter which applies? +
A lay-off occurs when an employer provides no work at all on a day the employee would normally be required to work, while short-time working occurs when the employer reduces working days or hours so that pay for the week falls below half a week's normal pay. The distinction matters because the two situations have different impacts on pay, on rights to statutory guarantee pay and on the calculation of any redundancy entitlement. The Simply-Docs folder contains separate notice letters and termination letters for each arrangement, so you use the right document for the actual situation.
