Layoff

A layoff is the termination of the employment status of a hired worker. This is an action initiated by the employer. The former employee may no longer perform work related services or collect wages. In some instances, a layoff is only a temporary suspension of employment, and at other times it is permanent. Layoffs are usually the result of economic downturns. A company may choose to reduce the size of its workforce to reduce costs until the situation improves. Unlike termination for misconduct, a layoff has fewer negative repercussions for the worker. The employee remains eligible for rehire and often has positive work experience and references that are useful during a job search. The former employee may also be eligible for unemployment benefits, retraining, and other forms of support.

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