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Question
Answer the following question:
Why layoff is considered to be a softer version of retrenchment?
Solution
To lay-off is to temporarily or permanently terminate or get rid of the staff/employee. This is usually done by a company/firm on account of business slow down as a result of which there is insufficient work to be allotted to an employee who is registered with the establishment and who has not yet been retrenched.
It is suspension or termination of employment (with or without notice) by an employer or management. Generally, a company layoff involves the cessation of employee benefits such as salary or wages. The laid-off employees are paid laid-off compensation. All of the laid-off employees should be taken back in their usual posts, as soon as the lay-off lifted out.
