We've considered employment law advice from both an employer's and employee's perspective, and looked at how to best resolve issues that have arisen now, and the lessons that can be learned for the future.

From an employer's perspective

Where key employees are stranded and are not in a position to return on their agreed date this can obviously create disruption to the employer's business.

Normally an employer would look to their staff manual or contracts of employment for any polices or contractual obligations on how to deal with this, but as this is a unique set of circumstances it is very unlikely that staff handbooks and employment contracts will provide much assistance for employers.

Essentially, where an employee has booked holiday and has failed to return on the agreed date this would normally be considered an unauthorised absence liable to disciplinary action.

Furthermore, there is generally no obligation on an employer to pay an employee who has not actually carried out any work unless there is a contractual right to such payment in the circumstances, which is going to be unlikely here.

If the employee is stranded abroad on business, then consideration should be given for reimbursement of their expenses during this period by the employer.

The employer should ensure that the employee complies with any expenses policy set out in their staff handbook and if they have, consider reimbursing the employee for expenses they would not have incurred had they arrived back on their agreed date.

These expenses will usually include reasonable accommodation and overnight expenses, travel that would not have been incurred during the employee's normal travel between their home and place of work or equivalent and reasonable out of pocket expenses, for example a contribution for breakfast, lunch and an evening meal.

From an employee's perspective

Given the fact that the employer has been expecting the employee back at work, the likelihood that there is no obligation on the employer to pay and that unauthorised absence could lead to disciplinary action, the employee should be in regular contact with the employer and provide updates on their position.

They should do everything they reasonably can to try and organise alternative transport for an earlier return. Any work undertaken remotely during this period should be recorded in case the employer is subsequently reluctant to pay any salary during the extended period of absence.

What are the options available for the parties?

When dealing with the current situation, employers need to bear in mind their duty not to do anything which could damage their relationship with employees and their duty to maintain 'trust and confidence'.

Dealing harshly with employees could lead to a breach of such duty, which would entitle an employee, should they wish, to resign and claim constructive dismissal. Such an approach is unlikely to enhance labour relations.

Employers should therefore take a sympathetic approach, and there are a number of options available:

• they can, where possible agree to authorise the extended time off as annual leave
• where the employee does not wish to take the extended period as annual leave, treat their absence as authorised unpaid leave
• alternatively, agree that the employee makes up the lost time during an agreed period

Of course, the employer could use their discretion and pay the employee in full during this period, without it affecting their leave etc, but are under no obligation to do so.

Potential pitfalls

Given that many employees do not leave their BlackBerry at home when they go to the beach, if they have been managing to perform some or most of their duties remotely the employer needs to be more cautious before making any deductions from pay, as there is a risk of unlawful deduction from wages claims.

Employers must also be aware that employees might be affected in different ways, and that they cannot expect the same of all their staff as this will be dependent on where they are stranded and their personal circumstances.

Any policy to pay employees for some or all of their absence would need to be applied consistently to all affected employees with the same circumstances in order to avoid the risk of discrimination claims.

What can an employer do in future?

Given recent extreme weather conditions and unusual natural events such as the volcano eruption, it may be prudent for employers to review and formulate their policies and business continuity plans to deal with any similar issues in the future.

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All documents should be read and used in accordance with the terms and conditions. This document is for your general information only and is not a detailed statement of the law. It is provided to you free of charge and should not be used as a substitute for specific legal advice. If you require specific legal advice please contact our helpline on 03700 86 86 86.

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