Lay-offs and short-time working
2. Guarantee pay
Rate and length of statutory lay-off pay
You’re entitled to guarantee pay during lay off or short-time working. The maximum you can get is £26.00 a day for 5 days in any 3-month period - so a maximum of £130.
If you usually earn less than £26.00 a day you’ll get your normal daily rate.
If you work part-time, your entitlement is worked out proportionally.
You can’t claim guarantee pay for any day that you do some work.
Eligibility for statutory lay-off pay
- have been employed continuously for 1 month (includes part-time workers)
- reasonably make sure you’re available for work
- not refuse any reasonable alternative work (including work not in your contract)
- not have been laid off because of industrial action
Statutory lay-off pay and your employment contract
Your employer may have their own guarantee pay scheme. It can’t be less than the statutory arrangements. If you get your employer’s payments, you don’t get statutory lay-off pay on top of this.
Not paying guarantee pay counts as an unlawful deduction from your wages - you could make a claim to an employment tribunal.