Employment Law London

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 £20.40 per day for up to five days in any period of three months where he is laid off. Therefore, the annual maximum is currently £408.