Job Displacement

Posted in Human Resource Terms, Total Reads: 9756

Definition: Job Displacement

Job displacement occurs when an employee who has an established working history is separated from the job or the job position is eliminated leaving the individual unemployed from that position. An individual who has been removed from one position and hired into another position by the same employer is also called as a displaced employee. An important condition of job displacement is that the job loss from that position must be permanent and not temporary.

This can occur due to the organization being shut down, or a mass layoff, or a major organizational restructuring leading to creation of new positions and removing the previous ones, etc.


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