What is a lay off?

When an employer reduces the size of their workforce due to a job or jobs being no longer necessary to the function of a business, this is known as lay offs. It is important to understand this is different to losing your job and a replacement hired in your place.

Why are roles subject to lay offs?

Roles are laid off for a variety of reasons; sometimes large numbers of a work force lose their job en-masse whereas other forms of lay off are focused on individual roles or functions of a business. Some examples of why lay offs could be made include:

• A business moves a function elsewhere – there are a variety of reasons that a business may move a particular function elsewhere, shortage of skills in an area, running costs and overheads, a buyout or merger are just some of the reasons a business may move its operation.
• Technology – as technology develops, the cost and efficiency of using humans to perform a function a machine or computer can do can result in jobs becoming redundant.
• Role no longer exists – sometimes a role can become irrelevant and as such a business will consider it unprofitable and inefficient to have this continue to exist. As such, certain positions and functions can be laid off, and will not be replaced with people doing the same or similar roles.
• Business closing – a business can be forced to cease trading for one reason or another, and often if this is the case, then layoffs follow. In areas where a particular industry is the main staple of the economy, businesses being forced to close due to economic or other pressures can lead to areas suffering from an economic decline if the core industry can no longer function.
• Business bought by another – a merger or acquisition can result in lay offs, if there are existing roles within one business that buys another then the roles of the company that has been bought could potentially be at risk, if the way that operations take place do not fit in with the new parent company.

How Lay Off Selections are Made
Selections, are the process by which a business will decide who within the business is in the unfortunate position of being laid off. The reasons you have been laid off should be made clear, and there should be no prejudice behind this decision. An appeals process should be in place for those who feel they have been selected unfairly.
 
 Key factors in selecting staff for a lay off include: 

• Standard of work – if an employee’s work is below standard, or often requires additional work and revisions then this could be seen as a reason to not keep hold of an employee, and as such they may
• Skills and experience – ensuring that those staff with the most important skills and experience are retained will be a priority for a business when making lay off selections. Those with less skills and experience may be considered of less value to the business as it moves forward.
• Attendance record – those with poor attendance will be flagged as possible candidates for a lay off. Whilst this may be justified with sick notes and evidence, those considered more reliable will appeal to the business.
• Disciplinary record – those employees who have a poor disciplinary record in the past will be more likely to a candidate for redundancy than an employee who has a flawless record.

Whilst being laid off is not a pleasant experience, financially, there can be upsides. Those who have been within a business for a significant amount of time can get a large amount of redundancy pay based on the number of years worked at the business.

Lay offs can be a worrying time for those affected. Resume People are experts in helping those who have been laid off kick-start their job search. We produce exceptional resumes and supporting documents which will allow you to showcase the positives from your career and how they can benefit a prospective employer. Contact Resume People today and take the next step in your career.