Short Time Working and Layoff: What it means
If your employer has reduced your hours or sent you home without pay, you may be affected by short time working or a temporary layoff in the UK. These situations can be confusing, but your rights are clearly defined under UK employment law.
This guide explains exactly what short time working means, how a layoff works, and what steps you should take immediately.
What is short time working
Short time working happens when your employer reduces your working hours and, as a result, your pay drops below half your normal weekly earnings.
This is different from redundancy. You are still employed, but you are not receiving your usual level of work or income.
Example:
If you normally work 40 hours but are reduced to 10–15 hours per week, this is considered short time at work.
What is a layoff
A layoff is when your employer temporarily asks you not to come into work at all, usually because there is no work available.
During a temporary layoff in the UK, you:
- Remain employed
- May not receive full pay
- May be entitled to statutory guarantee pay (limited)
Lay off and short time working: key differences
Understanding the difference is essential for knowing your next steps:
- Layoff: no work at all for a period of time
- Short time working: reduced hours and reduced pay
- Both are temporary measures, not permanent job loss
Can your employer legally do this
Your employer can only place you on layoff or short time working if:
- Your contract allows it, or
- You agree to it
If there is no contractual clause and you have not agreed, this could be a breach of contract.
What you should do immediately
If you have been placed on short time working or a layoff, take these steps straight away:
1. Check your contract
Look for clauses covering:
- Layoff
- Short time working
- Reduced hours or pay
2. Confirm your pay situation
Ask your employer:
- Will you receive any pay during this period
- Are you entitled to statutory guarantee pay
3. Keep records
Document:
- Dates of reduced hours or no work
- Communication from your employer
- Any changes to your pay
4. Ask how long this will last
Clarity on duration is critical for planning your next move.
When short time working becomes a bigger issue
If your situation continues, your rights may change.
You may be able to take further action if:
- You have been laid off or on short time for 4 consecutive weeks, or
- You have had 6 weeks within a 13-week period (with at least 3 consecutive weeks)
In these cases, you may be able to claim redundancy pay.
Can you claim redundancy after short time working
Yes, in certain situations.
If your employer cannot provide normal work over a sustained period, you may have the right to:
- Submit a written claim for redundancy
- Receive statutory redundancy pay (if eligible)
This is a key protection for workers facing ongoing reduced income.
Pay during Short Time or Layoff
In many cases:
- You may not receive full pay
- You may receive statutory guarantee pay (limited and capped)
- Some employers offer enhanced pay, but this is not guaranteed
Understanding your pay position is critical to making informed decisions.
Real workplace scenario
A warehouse worker is told there is no work due to supply issues. They are sent home for two weeks with no pay, then brought back on reduced hours.
This situation involves both:
- Temporary layoff (no work period)
- Short time working (reduced hours after return)
In this case, tracking time periods becomes essential for redundancy eligibility.
How The Workers Union supports you
At The Workers Union, we understand that sudden changes to your working hours or income can place real pressure on you and your family.
We help you:
- Understand your rights clearly and quickly
- Review your contract and situation
- Identify whether your employer is acting within the law
- Decide your next step with confidence
If your situation is ongoing or unclear, getting guidance early can prevent long-term financial impact.
Final word: take control early
Short time working and layoffs are warning signs, not just temporary inconveniences.
The earlier you:
- Understand your rights
- Track your situation
- Take informed action
The stronger your position will be.
If your work has been reduced or stopped, do not wait. Act now to protect your income and your future.
Frequently Asked Questions
It means your employer has reduced your working hours, and your pay is significantly lower than normal.
If your contract does not allow it, you may be able to challenge the change.
There is no strict maximum, but extended periods may trigger redundancy rights.
Not immediately. These are temporary measures, but long-term use can lead to redundancy.
I want to join
Join us today – it’s easy!
You’re just a few clicks away from investing in a better future for working people
I’m a member
All the support and advice you need
Log in to your account. Full access to your resources, contacts, personal dashboard, and instant advice.
