Payroll Software
Integrated HR and payroll software, so your employee details will automatically feed into accurate reports.
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Sometimes, you might not have enough work to give out.
Laying off workers can help keep your business going during hard times. But there are legal rules when it comes to temporarily letting employees go - for one week or just a few days.
If you don't manage your lay-off process, it could lead to unfair dismissal claims, compensation penalties, and business damages.
Lay-offs and short-time working terms are mostly found under the Employment Rights Act 1996 (ERA). In legal practice, they're collectively known as 'LOST'.
An employer can only legally enforce lay-off or short-time working if they have a contractual right. Meaning, this express right must be included in an employee's contract.
Lay-offs are usually found under 'shortage of work' contract clauses. So, employees will already have it. If a contract clause doesn’t exist, employees may agree to lay-offs is expressed, as it’s a better option than redundancy.
Sometimes, an employer might be faced with having to lay-off staff because of unexpected business impacts. That's why it's always beneficial to add an express contractual right to all employee contracts - and that's why we take care of everything when you work with our HR experts.
If an employer doesn't follow a fair and legal lay-off process, it could end with huge legal consequences.
Some lay-off processes treat employees unfairly compared to others; i.e., being selected unfairly). All employees are protected from discrimination relating to nine protected characteristics:
Along with financial penalties, an employer could face losing talented staff for good. Not to mention, the reputational damage and lost productivity that comes with employment tribunal processes.
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