A layoff is a period of inactivity or idleness, often involving the temporary or permanent termination of a worker's employment for reasons unrelated to the individual's performance on the job
. Layoffs can occur due to various reasons, such as a lack of work, lack of funds, or reorganization
. When an employee is laid off, they typically lose their wages and company benefits but qualify for government-sponsored unemployment
. The difference between a layoff and other types of job termination, such as being fired or furloughed, lies in the reason for the separation:
- Laid off : The employee is separated from their job due to changes made by the company, such as downsizing a department or reorganization
- Fired : The employee is terminated from their job due to something that the company deems was their fault
- Furloughed : The employee is temporarily removed from their job, often as a cost-cutting measure, and is expected to return to work or be restored from a reduced work schedule once the furlough period ends
When an employee is laid off, it is essential to speak with the HR department to ensure they have all the necessary exit information, such as proper notice of the layoff and any available unemployment benefits
. Additionally, laid-off employees may be eligible for continued benefits coverage and government-sponsored unemployment
