Employee Layoff

An employee layoff is when one or more workers are either temporarily or permanently relieved of their duties by their employers, usually due to business reasons. In recent decades, massive layoffs by large companies have become strategic means for overcoming economic downturns. However, those who must inform employees of this decision must do so kindly, yet firmly. Experts advise that it be done quickly, while letting the person know that this decision had little to do with their performance. They should also be told of their rights, including severance pay, how long they will have health care benefits, and how COBRA works. Employees should also be told that the company will help to provide them references to help them find new jobs.

Fast Facts

  • The term "layoff" originally referred only to temporary interruptions of work. Now, it can mean temporary or permanent.
  • 136,924 employees were laid off in November, 2007.

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