A guide to Statutory Guarantee Pay (SGP)

How to process SGP, also called Lay-off Pay, in Sage 50 Payroll.

SGP is the minimum amount to pay employees when they're laid off. The right to SGP applies only to employees. It doesn't apply to workers, such as contract or agency workers, or the self-employed.

The right to SGP applies only to employees, not to workers, such as contract or agency workers, or the self-employed. The main qualifying conditions for SGP are that an employee must:

 TIP: This type of payment is also known as Lay-off pay. Find out more on Gov.uk. 

• Be laid off for at least one complete working day
• Have been employed continuously for at least one month, including part-time employees
• Have an employment contract for more than three months
• Reasonably, make sure they're available for work
• Not refuse reasonable alternative work, including work that isn't in their contract
• Not have been laid off because of industrial action

Guarantee payments are calculated by multiplying the number of normal working hours for the day, by the employee's average hourly rate. They'll receive their daily rate or an upper limit value, whichever is lower. Most people get the upper limit value per day.