Guarantee pay

'Guarantee' payments must be made to employees with at least one month's service, when they could normally expect to work but no work is available. Periods when employees are laid off because there is no work available must be agreed in advance to avoid the employer being in breach of contract.

An employee is entitled to a maximum payment of £15.35 per day for up to 5 days in any period of 3 months where they are laid off. Therefore, the annual maximum is currently £307.00

An employee may raise a complaint with an employment tribunal if his or her employer fails to pay the whole or part of a guarantee payment to which he or she is entitled. The employment tribunal can award compensation equal to the amount of guarantee payment which it finds due to the employee.

 

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