Short Time Working, Lay Offs and Redundancy

Short Time Working, Lay Offs and Redundancy

As the current Coronavirus Job Retention Scheme is due to close at 31 October, some employers may be looking at ways of reducing their wage bill.  STW/LO’s may be one of the answers. 

If an employer does not have enough work for their employees, they may need to consider:

·         lay-offs (sending employees home temporarily)

·         short-time working (reducing employees' working hours)

These options may help avoid redundancies. But this should be a last resort for employers. Employers should consider other options first, for example, agreeing with employees to:

·         take holiday

·         work from home

·         work more flexibly

·         take unpaid leave

When an employee can be laid off or put on short-time working

By law, employers can lay off employees or put them on short-time working if it's either:

·         included in the employee's employment contract

·         custom and practice in your workplace, with clear evidence

·         a national agreement for the industry

·         an agreement between your workplace and a trade union

·         agreed by the employer and employee to change the terms in the employment contract

There are legal implications involved with this process, so please contact your HR Advisor on 330 332 2636 before you take any action.


Please contact your HR Advisor for specialist advice on this subject. However you should be aware that If you are considering redundancies of over 19 positions you will need to submit an HR1 form to the Government and your timelines are:

·         20 to 99 positions – 30 days before the first redundancy

·         100 or more positions – 45 days before first redundancy

With this in mind the following deadlines should be noted:

·         1st October for up to 99 positions

·         Should have been 17th September for over 100 positions

The Xact team will give your business a free of charge health and safety assessment to ensure that you are legally compliant. Please contact the Xact Team to arrange your free consultation by clicking on the button.