Layoff refers to a temporary or permanent termination of employment by an employer. It typically occurs when a company needs to reduce its workforce due to financial difficulties, restructuring, or other reasons. Employees may be entitled to severance pay, unemployment benefits, and outplacement services when laid off. Severance pay is a lump sum paid to the employee as compensation for their job loss. Unemployment benefits are payments made to the employee by the government to help them cover their living expenses while looking for a new job. Outplacement services are programs designed to help the employee find a new job.