Legal Definitions - layoff

Definition: Layoff refers to the termination of employment by an employer, either temporarily or permanently, especially when many employees are let go at once. It can also be referred to as a reduction in force.

Example: A company may lay off a large number of employees due to financial difficulties or restructuring. This means that those employees will no longer have a job with the company.

Worker Adjustment and Retraining Notification Act: This is a federal law that requires employers to give notice of a plant closing or mass layoff at least 60 days before it happens. The notice must be given to the employees, the state-dislocated-workers unit, and the chief elected official of the local government where the layoff is to occur. For example, if a factory is closing down and 500 or more full-time employees will lose their jobs, the employer must give notice under this law.

The examples illustrate that a layoff is when an employer terminates the employment of many employees at once, either temporarily or permanently. The Worker Adjustment and Retraining Notification Act is a law that requires employers to give notice of a mass layoff or plant closing to the affected employees and government officials.