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What is Lay-off?

• An employee is viewed as being “laid-off” where their employment is temporarily suspended as their employer is unable to provide them with work..
• Lay-off is often used where an employer has a reasonable expectation that they will be able to offer re-employment in the future.
• An unpaid lay-off situation can only occur where it is provided for in the contract of employment.

How long can a lay-off period last?

• Lay-off can be for a specified period of time (for example, until trading conditions improve) or can be patterned lay-offs ( for example, one week on, one week off.)

What are employees on lay-off entitled to?

• Employees on lay-off are entitled to social welfare benefits for period not worked so long as they satisfy the PRSI contribution requirements.

What are the options for an employee on lay-off?

• An employee may wish to terminate their contract of employment. In order to do so, they must give the employer the required contractual notice period.
• Alternatively, the employer may inform their employer of their intention to claim redundancy payment on expiry of the lay-off period, or no later than four weeks after the cessation of the lay-off period

What is Short - time working?

• This is when an employee has his working hours and pay reduced to less than half their normal rate.
• The general pattern of short- time working is a three day week when the employee claims off social welfare for the other two day so long as they satisfy the PRSI contribution requirements.
• Short- time working is viewed as being a temporary situation.
• Note that if you have been put on short time and then are made redundant, depending on the circumsntances your redundancy payment may be based on your pay for a full week.