Following the pandemic and the use of Furlough, a lot of questions were raised in relation to Lay-Off and Short-Time working (LOST) and its' use.
What is LOST?
Lay-Off
In the event there is a reduction in work, not necessarily attributed to Covid-19, in place of immediately going for a redundancy and with the expectance that work may pick back up in a few weeks/ month time then employers can use lay-off.
This is were staff are not able to work but are kept under employment, with their continuity of employment and employment rights still in effect under their contract of employment. This type of leave is unpaid for the most part, aside from the Statutory Guaranteed pay (SGP) of £30.00 pound for the first 5 days of lay off.
Bare in mind if on Lay-Off for 4 consecutive weeks or 6 weeks in a 13 week period, your employee may invoke their right to be made redundant and claim redundancy pay.
Short-Time
Short-Time is based on the same principle but rather than no work at all, you can facilitate 50% or less of the employee's contractual hours. Thus allowing you to enforce a Short-Time working week.
However, the requirement here is for the circumstances to be 50% of their contractual hours or less. Anything above 50% would mean Short-Time cannot necessarily be enforced and instead a temporary but agreed contractual change should be followed for a reduction in hours.
A key note to both employers and employers is that a LOST Policy need to be in place to avail of this otherwise any term of lay-off would be on full pay, unless agreed prior with the employee to waiver this and accept unpaid Lay-Off/ Short-Time with the SGP amount. This policy is usually contained with a company's redundancy policy.
Notice is required in advance with either approach tot he employees in any circumstance.
For more information or guidance, get in touch today.
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