Laidoff

Laidoff is a term used to describe the termination of an employee's job due to business reasons, rather than for performance or misconduct. A layoff typically results from a reduction in the workforce prompted by economic conditions, organizational restructuring, outsourcing, or the closing of a facility. Depending on policy and jurisdiction, layoff may be temporary or permanent, and some workers may be recalled if business conditions improve.

Causes and process: Common causes include declining demand, automation, seasonal cycles, or corporate mergers and acquisitions. Employers usually provide advance notice where required and may offer severance packages, continuation of benefits, and access to unemployment insurance. In large-scale layoffs, laws may require formal procedures and notification to workers, unions, and government agencies.

Legal context: In the United States, the federal WARN Act requires 60 days' notice for certain plant closures or mass layoffs, but coverage is limited. In the United Kingdom and the European Union, redundancy payments, notice periods, and collective procedures apply for qualifying layoffs, reflecting stronger employee protections in many jurisdictions.

Impact and response: Layoffs can affect workers economically and personally, reducing income and potentially affecting mental health and long-term career prospects. Communities may experience ripple effects. Support often includes unemployment benefits, retraining programs, career counseling, and job placement services, as well as employer-sponsored outplacement assistance.