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Employee Terminations – Layoff

Another reason an employee may be terminated is the layoff.  Employees are laid off when budget cuts or lack of work cause the employer to sever the working relationship with one or more employees in order to restructure the company or rectify a financial problem. This termination is unique because the employee is not being terminated as a result of his or her own actions.

All options must be evaluated before a company decides that reduction of workforce is the proper solution.  Employees who are laid off must not be treated like those who are terminated as a result of their actions or inactions.  When dealing with layoffs, it is even more important to structure the format of the exit interview to reflect the reason for termination and to emphasize that the employee is not to blame.

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