Laid Off: Definition, Reasons, Consequences, & Employee Rights

Laid off is a term used in the workplace when an employee’s job has been terminated, either temporarily or permanently. Most commonly associated with economic downturns, it can also occur due to changes in company policy, reorganization, or downsizing. When an employee is laid off, they are usually entitled to certain rights and benefits from their employer.

The definition of being laid off refers to the involuntary termination of employment due to no fault on behalf of the employee. This means that employees who are laid off are not necessarily fired for cause; instead, their job was eliminated through no fault of their own. Reasons for being laid off often include restructuring within a company, budget cuts, mergers or acquisitions of other companies and organizations, or simply because the organization cannot afford the salary anymore.

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