Layoffs

Layoffs Explained
1.    A layoff is a temporary or permanent termination of employment for a particular employee-base in a company. Layoffs occur for a variety of reasons but are typically attached to a company or industry’s poor performance. Additionally, if a product line becomes obsolete (if workers are displaced through the advancement of a technology) the company will invariably eliminate that portion of its work force.

2.    Layoffs offer the business a cost cutting strategy through the elimination of multiple employee salaries.In most instances,a layoff will consist of the termination of a large group of employees for business purposes.
3.    When a business entity ‘lays off’ a portion of its employee base there is no true structure to be followed. An entity can lay off a portion of a particular industry or the entire industry—the amount of employees let go is dependent on the company’s particular cost/benefit analysis.
4.    The majority of corporations in the United States seek a profit; as a result, the cost of a particular company is constantly viewed in relation to their sales and production of a particular service or good. When a business entity experiences a lack of production or sales, the work forceis typically the first component of the business to be cut.
5.     Layoffs are held in contrast to group firings or the individual firing of an employee.When an employee is fired he or she is, usually for a specific reason or failure to deliver their intended role. The reasons attached to firing an employee are typically performance-based; the employee will be fired if he or she no longer contributes in a positive manner or fails to deliver the intended function of the job.
6.    Employeesare typically fired for misconduct, chronic lateness, or any performance issue that disrupts the business’ intended goals. In contrast, layoffs are a widespread termination of multiple employees, initiated to cut costs or implement a new format/technology. As a result, layoffs are typically not based on performance, but instead on the particular department’s health. Furthermore, the firing and layoffs result in varied aftereffects in the form of government aid and unemployment benefits.

Unemployment Compensation for a Laid-Off Worker
1.    Laid-off workers can file for unemployment compensation through their local state government. Depending on the laws in their particular state, workers who leave their job voluntarily, are fired for performance-based reasons or gross misconduct are typically not eligible to collect unemployment benefits.
2.    Unemployment compensation is government money delivered incrementally to the laid-off worker. The compensation is awarded to the individual in the form of a paper check or direct deposit. The amount of compensation is dependent on the individual’s previous salary; the compensation rate is a percentage of the individual’s monthly income.