Coronavirus Help | Terms & Conditions • March 19, 2020
No lay-off clause?
Written by Jennifer Ormond
My staff don’t have a lay-off clauses in their contracts. What can I do?
We’ve already posted our guidance on lay-off and short-time working here. There are very strict time limits to avoid redundancy which the government have not yet amended. We’re keeping an eye on these developments.
Without a contractual right to lay-off without pay and without trying to issue new contracts, the options to lay your staff of without pay are below.
1. Dismiss all employees with less than 2 years service
2. Consult to lay-off without pay – you are more likely to get staff agreement now that mortgage holidays are permitted;
3. Consult to lay-off with half pay (or other amount) – as above, now more likely to get staff agreement and it will protect the company for the future.
4. Use some annual leave; (but will still cost you some money)
5. Find out who needs to stay at home to look after their children – this is UNPAID time off for the care of dependants as long as they need to do it.
Although it may not feel like it, you are in a great position to talk to your staff. It is critical that we all come together and doing so to protect the future viability of your company can also prevent job losses in the long term.
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