Zero Layoff Policy

Posted in Human Resource Terms, Total Reads: 1060

Definition: Zero Layoff Policy

This is a policy of an organisation which specifies that no employee would be terminated from his/her job on account of the bad situations present in the economy which would adversely impact the business.

However, it doesn’t exempt any employee from being terminated from the company on account of poor performance.

This will be very much helping in maintaining, if not boosting, the employee morale. But then the company will be hindered from going for cost cutting measures. Or it can go for other cost cutting measures like not giving benefits, etc. This gives confidence to employees to perform better as they believe they have job security.

On the contrary, misuse of zero-layoff policy can also be a challenge for companies, where employees become complacent & under perform. In that case, the employee however can be terminated.

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