It seems that a month cannot go by without another case reminding employers of the ever-increasing duties imposed upon them.
The Employment Appeal Tribunal (EAT) recently had to consider whether an employer had a right to lay off staff. The ability to lay off staff can be an important tool for employers to help them cope with downturns in work. However the right to lay off staff is only a temporary arrangement.
Unsurprisingly, the contract of employment is key when deciding whether an employer has the right to lay off staff. If the contract contains such a right the employer can lay off staff for a short period without pay. If there is no contractual right to do this then the employee could resign and claim constructive dismissal.
In the recent case, the employee had been laid off for four weeks. He resigned and claimed constructive dismissal arguing that the lay off period was too long. He lost his case. The EAT held that there would be no additional term implied into the contract providing that the lay off period had to be for a 'reasonable' amount of time.
When did you last review your employment contracts? The right to lay staff off is not an issue that has been at the forefront of employer's minds in recent years. However if an employer is faced with a decrease in orders, the ability to lay off staff might be the short term remedy that the employer needs to get them over a difficult trading period.
To discuss this or any other employment related matter, contact us.