Redundancy pay for lay-off or short-time working

An employee laid off work without pay or put on short-time working earning less than half of an employee’s weekly wage may be able to claim a redundancy payment. The rules are found in sections 148-154 of the ERA 96. To be able to claim, the lay-off or short-time working must have lasted either:

• four or more whole weeks in a row; or

• a total of six or more whole weeks within a 13-week period.

These rules are complex and the timetable for applying is very strict, so anyone thinking of claiming should ask, without delay, for advice from their union.

The redundancy pay of an employee made redundant while on statutory short-time working (i.e. when receiving less than half a week’s pay) must be calculated using the employee’s normal weekly wage before moving to on short-time working — not the short-time weekly wage (ERA section 226(5)(6), Dutton v Jones t/a Llandow Metals UKEAT/0236/12/ZT). Consent to short-time working is not consent to vary or waive any rights under the original contract.