Employment Rights Act 1996 s.31 – Limits on amount of and entitlement to guarantee payment

(1)The amount of a guarantee payment payable to an employee in respect of any day shall not exceed [^F144£41^F144] .

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

(3)The specified number of days for the purposes of subsection (2) is 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.

(4)But where that number of days varies from week to week or over a longer period, the specified number of days is instead—

(a)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

(b)where the employee has not been employed for a sufficient period to enable the calculation to be made under paragraph (a), 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 considerations specified in subsection (5) as are appropriate in the circumstances.

(5)The considerations referred to in subsection (4)(b) are—

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

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

(6)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, subsections (3) and (4) 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.

[^F145 (7)The Secretary of State may by order vary—

(a)the length of the period specified in subsection (2);

(b)a limit specified in subsection (3) or (4).^F145]

Definitions used in section 31 8

guarantee payment

“guarantee payment” has the meaning given by section 28,

Defined in s.235(1) · see it in the full Act

employee

(1) In this Act “employee” means an individual who has entered into or works under (or, where the employment has ceased, worked under) a contract of employment.

Defined in s.230(1) · see it in the full Act

day

(4) In this Part “day” means the period of twenty-four hours from midnight to midnight.

Defined in s.28(4) · see it in the full Act

week

“week”—

(a)

in Chapter I of this Part means a week ending with Saturday, and

(b)

otherwise, except in sections 27C, 75F, 75H, 80A, 80B , 80EA , 80EF , 80J and 86 and paragraph 11 of Schedule A1 , means, in relation to an employee whose remuneration is calculated weekly by a week ending with a day other than Saturday, a week ending with that other day and, in relation to any other employee, a week ending with Saturday.

Defined in s.235(1) · see it in the full Act

contract of employment

(2) In this Act “contract of employment” means a contract of service or apprenticeship, whether express or implied, and (if it is express) whether oral or in writing.

Defined in s.230(2) · see it in the full Act

employed

and “employed” shall be construed accordingly.

Defined in s.230(5) · see it in the full Act

(6) This section has effect subject to sections 43K , 47B(3) and 49B(10) ; and for the purposes of Part XIII so far as relating to Part IVA or section 47B, “worker”, “worker’s contract” and, in relation to a worker, “employer”, “employment” and “employed” have the extended meaning given by section 43K.

Defined in s.230(6) · see it in the full Act

employment

(5) In this Act “employment”—

(a)in relation to an employee, means (except for the purposes of section 171) employment under a contract of employment, and

(b)in relation to a worker, means employment under his contract;

Defined in s.230(5) · see it in the full Act

Defined in s.230(6) · see it in the full Act

employer

(4) In this Act “employer”, in relation to an employee or a worker, means the person by whom the employee or worker is (or, where the employment has ceased, was) employed.

Defined in s.230(4) · see it in the full Act

Defined in s.230(6) · see it in the full Act

1 more judgment, and what each says about section 31, are in the case-law panel in the full Act.

Amendments and notes

3 notes from legislation.gov.uk

Amendments

F144Sum in s. 31(1) substituted (6.4.2026) by The Employment Rights (Increase of Limits) Order 2026 (S.I. 2026/310), art. 1(2), Sch. (with art. 4)
F145S. 31(7) substituted (25.10.1999) by 1999 c. 26, s. 35; S.I. 1999/2830, art. 2(1), Sch. 1 Pt. I

Modifications

C22S. 31(1): power to amend conferred (17.12.1999) by 1999 c. 26, s. 34(1)(a); S.I. 1999/3374, art. 2(a) (with art. 3)

Employment Rights Act 1996, section 31

Definitions used in section 31 8

Cases considering section 31 4

Abercrombie & Ors v AGA Rangemaster Ltd

Henry v London General Transport Services Ltd

Punch Pub Company Ltd v O'Neill

Amendments and notes

Amendments

Modifications