Handle With Care: Implied Rights Of Lay-Off/short Time

A year after the commencement of COVID-19 restrictions in Ireland, decisions of the Workplace Relations Commission are now issuing with respect to initial cost-saving measures taken by employers in response to the crisis. From the outset, a frequently asked question was whether employers could unilaterally place employees on unpaid lay-off or short-time in the absence of an express provision contained in the contract. The Employment Group consider a recent decision on this point.

As outlined in our previous briefing COVID-19: Practical Considerations: Updated Employment FAQ the right of an employer to unilaterally place an employee on unpaid lay-off or short-time depends on whether there is an express clause in the contract of employment or whether such a right can be implied on the basis of custom and practice in circumstances of economic downturn or other periods of financial hardship.