In a world where the pandemic has wreaked havoc on businesses, temporary lay-off agreements have become a common occurrence. The situation is tough on both employers and employees alike. Short time and temporary lay-off agreements can be a useful tool for employers to keep their employees on board while managing finances and avoiding redundancies. However, it is important to note that the lay-off is temporary, and the employer is bound by law to bring the employee back to work as soon as the situation improves.
What is a short time and temporary lay-off agreement?
Short time and temporary lay-off agreements refer to a situation where an employer reduces an employee`s working hours or puts them on a temporary lay-off. The employee is still technically employed by the employer but is receiving reduced hours or no hours for a short period. This type of arrangement is often used by employers when there is a temporary decrease in work or revenue.
In Ireland, there are specific statutory provisions that protect employees who are put on short-time or temporary lay-offs. An employer must have the legal right to introduce a short-time or lay-off arrangement, and the detail of this right will depend on the contract of employment and any agreement in place between the employer and employee.
How does it work?
When an employer decides to put its employees on short-time or a temporary lay-off, the employees will receive a reduced wage or no wage at all for a short period. The employer can only make this decision if it is legally allowed to introduce a short-time or lay-off arrangement.
Employers should issue a written notice to the affected employees outlining the specifics of the arrangement, including the expected end date and any other relevant details. If the employer fails to provide notice to employees before introducing the arrangement, employees may be entitled to claim redundancy payments.
What are the benefits of a short time and temporary lay-off agreement?
The primary benefit of a short-time or temporary lay-off arrangement is that it allows an employer to reduce costs and keep its workforce intact. This approach ensures that employees are not made redundant and can resume employment as soon as the situation improves.
For employees, short-time work or temporary lay-off periods can provide some financial support, such as social welfare payments from the government. The employer might be able to top-up the employees` wages to supplement their income during the period of reduced working hours.
Conclusion
Short time and temporary lay-off agreements can be a useful tool for employers to manage costs and keep their workforce intact. However, employers must ensure that they have the legal right to introduce such arrangements and provide adequate notice to their employees. It is essential to ensure that employees` rights are protected, and they are not left in a precarious position during the period of short-time work or lay-off. With proper planning and communication with employees, both employers and employees can benefit from short time and temporary lay-off agreements.
