Employment Protection (Consolidation) Act 1978

15 Limits on amount of and entitlement to guarantee payment. E+W+S

(1) The amount of a guarantee payment payable to an employee in respect of any day shall not exceed [F1 £12.65].

(2) An employee shall not be entitled to guarantee payments in respect of more than the specified number of days in [F2 any period of three months].

(3) The specified number of days for the purposes of subsection (2) shall be, subject to subsection (4),—

(a) the number of days, not exceeding five, on which the employee normally works in a week under the contract of employment in force on the day in respect of which the guarantee payment is claimed; or

(b) where that number of days varies from week to week or over a longer period, the average number of such days, not exceeding five, calculated by dividing by twelve the total number of such days during the period of twelve weeks ending with the last complete week before the day in respect of which the guarantee payment is claimed, and rounding up the resulting figure to the next whole number; or

(c) in a case falling within paragraph (b) but where the employee has not been employed for a sufficient period to enable the calculation to be made under that paragraph, a number which fairly represents the number of the employee’s normal working days in a week, not exceeding five, having regard to such of the following considerations as are appropriate in the circumstances, that is to say,—

(i) the average number of normal working days in a week which the employee could expect in accordance with the terms of his contract;

(ii) the average number of such days of other employees engaged in relevant comparable employment with the same employer.

(4) If in any case an employee’s contract has been varied, or a new contract has been entered into, in connection with a period of short-time working, subsection (3) shall have effect as if for the references to the day in respect of which the guarantee payment is claimed there were substituted references to the last day on which the original contract was in force.

(5) The Secretary of State may vary any of the limits referred to in this section, and may in particular vary the [F3 length of the period] referred to in subsection (2), after a review under section 148, by order made in accordance with that section.

Textual Amendments

F1 Words substituted by virtue of S.I. 1990/384, arts. 2, 3 (which S.I. is revoked (1.4.1991) by S.I. 1991/464, art. 1(2) (with art. 3)

F2 Words substituted by Employment Act 1980 (c. 42, SIF 43:5), s. 14 save in relation to workless days (within the meaning of s. 12 of this Act) falling before 1.10.1980 except so far as they are relevant in determining entitlement to guarantee payments in respect of days falling after 1.10.1980

F3 Words substituted by Employment Act 1980 (c. 42, SIF 43:5), Sch. 1 para. 8