Guarantee payments


Published by a ³ÉÈËÓ°Òô Employment expert
Practice notes
In-house COVID-19

Guarantee payments


Published by a ³ÉÈËÓ°Òô Employment expert

Practice notes
In-house COVID-19
imgtext

This Practice Note explains the right to a guarantee payment, which provides limited pay protection for certain employees who are laid off or put on short-time working.

In practice the question whether a guarantee payment is due will usually arise in the case of hourly paid or piece rate Workers because they are most likely to be working under contracts which give the employer the right to lay off without pay.

The basic right

The basic right to a guarantee payment is set out in section 28 of the Employment Rights Act 1996 (ERA 1996). An employee is entitled to a guarantee payment for any ‘workless day’. This is a day throughout which the employee would normally be required to work but the employer does not provide the employee with work (see: The need for a ‘workless day’ below).

The employer’s failure to provide the employee with work must be for one of the prescribed reasons (see: Reasons for the failure to provide work below).

The level of pay protection is modest:

  1. •

    a maximum amount is payable per day

Powered by Lexis+®
Jurisdiction(s):
United Kingdom
Related legal acts:
Key definition:
Workers definition
What does Workers mean?

A term that includes employees and also other groups such as agency workers or anyone carrying out work who is not genuinely self-employed.

Read more

Popular documents

Does an employee who has taken unpaid leave accrue holiday entitlement during that period; and do periods

Does an employee who has taken unpaid leave accrue holiday entitlement during that period; and do periods of unpaid leave or long-term sickness absence affect the amount of holiday pay an employee should receive?The right under the Working Time Regulations 1998 (WTR 1998) is to a total of 5.6 weeks'

Holiday pay

Holiday payUPDATE: We are in the process of transitioning from our original Practice Notes: Holiday, Holiday pay and Holiday and sickness absence to our new materials on paid holiday entitlement which include Practice Notes: Statutory paid holiday—the right, Statutory paid holiday—carry-over,

What happens to pension contributions when an employee is on Statutory Sick Pay?

What happens to pension contributions when an employee is on Statutory Sick Pay?All employees, irrespective of age, are entitled to claim a statutory sick pay (SSP) as long as they have average earnings of at least £112 per week (from 6 April 2016). SSP is paid at the current rate of £88.45 per week

If an employee becomes ill while on a paid suspension, can their pay be reduced to sick pay?

If an employee becomes ill while on a paid suspension, can their pay be reduced to sick pay?Suspension pending the outcome of a disciplinary investigationIt is common for an employment contract to include the right to suspend an employee with pay for the purpose of investigating allegations of