A layoff takes place when an employee is either temporarily or permanently relieved of his duty by his employers. The cause of layoffs is generally due to a poor economy. Legal experts advise companies to have an official layoff policy. This policy should delineate who informs the employee (usually the immediate supervisor accompanied by a Human Resources manager), how the employee will be told, what his rights are, and how the company can best help them adjust to unemployment status (e.g., giving references and letters of recommendation to potential future employers). The layoff policy should include a formula for how much severance pay employees get. This is generally based upon tenure and position within the company. The employee should also be informed of COBRA, which allows them to retain their current health care plan, albeit at a high cost.