Schedule 2 LAY-OFF AND SHORT-TIME AGREEMENT

Employees who are not provided with work throughout a normal working day are entitled, under certain conditions, to be paid a guaranteed payment by their employer, as required by the existing statutory guarantee payment provisions.

It is intended that the Company’s lay-off agreement will replace the existing guarantee payment provisions. The Company will pay lay-off pay to employees on short-time working at a rate of £2.28 per hour up to a maximum of the equivalent of two working weeks in any six month period. For 39 hour workers, the maximum entitlement in any six month period will be twice their normal weekly hours, at £2.28 per hour. For the purposes of this agreement, short-time working will include any reduction in the Company’s requirements for work which leads to a lay-off or reduction in the normal working week. This is based on the Company’s minimum wage grade which is subject to an annual review on the 1st May.

The conditions of the Company’s lay-off agreement are as follows:–