Layoff

What does layoff mean?

A layoff is sometimes a term used by employers to terminate their workers’ employment. When your company is going through a lean phase, the company will lay off some people to cut down on costs and expenses. It means that the management has decided to terminate all the workers’ jobs at their organization.

What is the distinction between furloughs and layoffs?

Furloughs and layoffs are related in they both result in the worker being let go from their company or organization. However, the two terms refer to the situation that led to their firing.

A furlough is a temporary leave of absence granted to an employee due to an inability to fulfill his contractual obligations for a specific period. The individual is still paid for the duration of the furlough, and some employers may offer benefits coverage during this time as well. It is usually not a disciplinary action granted by employers due to financial hardship or other cases that affect their ability to continue employing the worker.

A layoff occurs when an employer is forced to temporarily close its business operations due to financial difficulties or restructuring. Since they can’t fulfill their contractual obligations, they can let go of employees until business operations resume. During this time, employers usually continue paying the workers’ salary but discontinue providing other benefits such as health insurance or workers’ compensation.

What Can You Do When You Get Laid Off?

A layoff can be a great time learning something new and taking on a new role. It can also be an opportunity to seek a better-paying job or get promoted if they performed well at their previous position.

The first step is to accept the loss of their position and then recover it by looking for opportunities in their field that fit them. If they have lost a stable job, then getting a new one might be difficult because of the uncertainty in the economy.

What happens to your Healthcare Insurance after you are laid off?

If you are laid off, your employer may continue to pay for your health insurance, depending on the circumstances surrounding your layoff. For example, if you are laid off in December, and you return to work in January of the following year, you may have employer-funded health care during that period. If you know to ask about this option and it is offered it will save you some money.

What do you mean by Mass Layoff?

A mass layoff is the termination of at least 50 employees by an employer within a month. A mass layoff may happen due to downsizing (lack of funds or inadequate production prerequisites) or the employer’s business relocation. A mass layoff is said to have a chance when at least 500 twenty-four-hour employees lose utilization within a month or if at minimum 33% of the employees (at a single geographic location of work) lose a career during one month. A mass layoff is different from a plant closing, in which all employees losing their jobs are transferred to other facilities.

Examples of Mass Layoff

The year 2009 was a tough time for General Motors. The company eventually filed for bankruptcy and needed a bailout from the government. The layoff planned by General Motors became a reality, and about 21,000 employees lost their jobs within just four months.

Besides the number of people being laid off, the mass layoff at General Motors was also unprecedented in that it affected hourly and salaried workers. The company had to cut costs in any way possible, including reducing its labor costs and not just the cost of materials is used to make cars.