Unfortunately, many businesses may temporarily suspend operations and will experience a sharp fall in turnover. As a result, some employers will make reductions to staffing levels.
Some employees may have lay off provisions in their employment contracts permitting employers to ask them to take unpaid leave.
However, most employment contracts do not contain a contractual right for employers to lay off staff. Employers can seek to negotiate temporary changes to working arrangements with staff. These include:
- periods of unpaid leave
- reduced working hours
- reductions in pay
Some employers may decide that they will need to make redundancies. If more than 20 employees are affected, special rules will apply.
Employers will need to tread carefully and understand their legal obligations.
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