Ask the expert: Laying off staff

A small business has decided to lay off staff for two weeks, as an alternative to redundancies. Esther Smith and Matthew Whelan advise on the correct procedure to follow.

The question:

A small firm employing only three staff has hit a brick wall with orders and clients cancelling. There is no alternative but to lay off staff for two weeks to give time to generate alternative business and save on costs whilst there is no work. Staff were advised last week this may be the case and, from next week, will not be required at work for two weeks.

Given the objective is to save money, only a day or two of holiday will be used in mitigation. Staff seem to understand that this is the only alternative and is being executed to avoid redundancy. Can the company proceed with these lay offs with minimal risk?