Layoff
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Layoff is the temporary suspension or permanent termination of employment of an employee or (more commonly) a group of employees for business reasons, such as the decision that certain positions are no longer necessary or a business slow-down or interruption in work. Originally the term "layoff" referred exclusively to a temporary interruption in work, as when factory work cyclically falls off. However, the term has also applied to the permanent elimination of positions as a cost-cutting measure (or for other reasons).
Further euphemisms are often used to "soften the blow" in the process of firing and being fired, including downsize, rightsize, smartsize, workforce reduction or workforce optimization, simplification and reduction in force (also called a "RIF", especially in the government employment sector). Mass layoff implies laying off a large number of workers. Attrition implies that positions will be eliminated as workers quit or retire. Early retirement means workers may quit now yet still remain eligible for their retirement benefits later. While redundancy is a specific legal term in UK employment law, it may be perceived as obfuscation. Firings imply misconduct or failure while lay-offs imply economic forces beyond one's control.
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[edit] Reduction in force common abbreviations
- RIF - A generic reduction in force, of undetermined method. Often pronounced like the word riff rather than spelled out. Sometimes used as a verb, as in "the employees were pretty heavily riffed".
- IRIF - An Involuntary Reduction in Force - The employee(s) didn't voluntarily choose to leave the company. This usually implies that the method of reduction involved either layoffs, firings, or both, but wouldn't usually imply resignations or retirements. If the employee is fired rather than laid off, the term "with cause" may be appended to indicate that the separation was due to this employee's performance and/or behavior, rather than being financially motivated.
- VRIF - A Voluntary Reduction in Force - The employee(s) did play a role in choosing to leave the company, most likely through resignation or retirement. In some instances, a company may exert pressure on an employee to make this choice, perhaps by implying that a layoff or termination would otherwise be imminent, or by offering an attractive severance or early retirement package.
- eRIF – Layoff notice by email.
- WFR - Work Force Reduction
[edit] Unemployment compensation
The method of separation may have an effect on a former employee's ability to collect whatever form of unemployment compensation might be available in their jurisdiction. In many U.S. states, workers who are laid off can file an unemployment claim and receive compensation. Depending on local or state laws, workers who leave voluntarily are generally ineligible to collect unemployment benefits, as are those who are fired for gross misconduct. Also, lay-offs due to a firm's moving production overseas may entitle one to increased re-training benefits.
Certain countries (e.g. France), distinguish between leaving the company of one's free will, in which case the person isn't entitled to unemployment benefits and leaving the company voluntarily in the frame of a RIF, in which case the person is entitled to them. An RIF reduced the number of jobs, rather than laying off specific people, and is usually accompanied by internal redeployment. A person might leave even if their job isn't reduced, unless the employer has strong objections. In this situation, it's more beneficial for the state to facilitate the departure of the more professionally active people, since they are less likely to remain jobless. Often they find new jobs while still being paid by their old companies, costing nothing to the social security system in the end.
[edit] Derivative terms
Downsizing has come to mean much more than job losses, being the word downsize now applied to almost everything. People describe downsizing in their cars, houses and nearly anything else that can be measured or valued.
This has also spawned the opposite term upsize, which means to grow, expand or purchase something larger.
[edit] See also
- Compromise agreement
- Furlough
- Office Space (1999 motion picture)
- Outsourcing
- Restructuring
- Severance package
- Unemployment
- Voluntary Redundancy
- Work sharing
[edit] External links
- Being Laid Off - 4 Steps to go From a Layoff to an Amazing Job - How to recover from a layoff and get back on track.
- How to Prepare for a Layoff - Article that discusses specific steps to take to prepare for a transition.
- CASE No.: 2001-ERA-19 A case before the U.S. Department of Labor, wherein the terms RIF, IRIF, and VRIF are commonly used.
- APPENDIX D; GLOSSARY OF TERMS A glossary in a U.S. Department of Energy document that includes brief definitions of RIF, IRIF, and VRIF.
- Summary of Reduction in Force Under OPM's Regulations, United States Office of Personnel Management
- UK Redundancy Legal Rights UK specific information on the legal rights of those being made redundant.
- Airline Industry Layoffs - by Patrick Smith
- Furloughed, Now What? - in Cabin Managers.
- Most Notable IT Industry Layoffs of 2008
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