Clarification on guarantee payments

Guarantee Payments for Lay-off and Short-time working

This is relevant to those people who are considering using a lay-off and short-time working clause from their contracts

There has is a bit of confusion around how guarantee payments work.

For clarification, …

Where people are eligible for Guarantee payments, they are payable for any workless days (up to a maximum of 5 days, in any 3 month period) where people are given no work at all in a given week, or where there is less than 50% of work in a given week.

Where you have agreed reduced hours with your staff and those hours amount to 50% or more of their normal contracted hours, guarantee payments are not due.

Where you have agreed a reduction in hours that amounts to less than 50% of their normal contracted hours, but those hours are spread across 5 days, meaning there are no ‘workless days’, guarantee payments are not due.

If you would like further advice please get in touch on 01386 751740 or email  [email protected]