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What does 'laid off' mean?

Being laid off means that your employer does not provide you with work. This may be temporary or permanent and sometimes your employer can't immediately tell how long you might be without work.

If your hours have dropped but you're still working, then you have not been laid off.

• How changes to your working hours affect tax credits

If your employer lays you off and tells you it is temporary

You're treated as though you are still working for up to four weeks from the date your employer lays you off. If you don't go back to work after that you're treated as if you have stopped work. For example, if you've been laid off until further notice or you lose your job. If this happens, you have a month from the date you were told the news to tell the Tax Credit Office.

You can contact the Tax Credit Office by calling the Tax Credit Helpline.

• Contact details for the Tax Credit Helpline

Example 1

John Smith is laid off for four weeks on 8 January. His employer tells him that he can expect to go back to work on 5 February. John calls the Tax Credit Helpline to tell them about this. He also tells them when he expects to go back to work.

On 5 February, he goes in to work. His employer does not know if John will be able to go back to work at all. John calls the Tax Credit Helpline to tell them the lay off is now indefinite. He will get Working Tax Credit up to 5 March.

You're laid off until further notice or you lose your job

During the first four weeks you are laid off, your employer might tell you that:

• you've been laid off until further notice
• you have lost your job

If either of these happens, you're treated as if you have stopped work from the day your employer tells you. You will be paid tax credits for four more weeks from that date.

You will need to let the Tax Credit Office know that you have been laid off until further notice or you have lost your job. You need to do this within one month of your employer telling you. You can contact the Tax Credit Office by calling the Tax Credit Helpline.

• Contact details for the Tax Credit Helpline

Example 2

Anne Jones is laid off on 8 January. Her employer tells her that she can expect to go back to work on 1 February. Anne calls the Tax Credit Helpline and tells them the lay off is temporary.

On 26 January, her employer tells her that they do not know if she will be able to go back to work at all. Anne calls the Tax Credit Helpline to tell them the lay off is now indefinite. Anne is treated as though she has stopped work. She will get Working Tax Credit up to 23 February (four weeks from 26 January).

Example 3

On 8 January, Anita Roberts is told that her employer has to lay her off indefinitely. Her employer does not know if she will be able to go back to work at all. Anita calls the Tax Credit Helpline to tell them she has been laid off indefinitely. Anita will get Working Tax Credit up to 5 February.

More useful links

• Tax credits: changes you need to report and when

• You haven't reported a change - what happens to your tax credits?

Useful contacts

• Tax Credit Helpline - contact details