Zero Layoff Policy

DEFINITION of 'Zero Layoff Policy'

A type of company policy that dictates that no employees would be terminated as a result of business based purposes dictated by th economy. This policy does not exempt termination as a result of poor performance or other violations of the employment contract.

BREAKING DOWN 'Zero Layoff Policy'

Having a zero layoff policy has a positive effect on employee morale, especially during rough economic times, as employees do not have to fear being unemployed. However, the company may need to implement other unpopular cost cutting measures (such as reducing benefits or hours) in order to make up for the costs of not laying employees off.

RELATED TERMS
  1. Notice Of Termination

    Generally refers to the notice provided by an employer stating ...
  2. Back Pay

    The amount of salary and other benefits that an employee claims ...
  3. Cost Cutting

    Measures implemented by a company to reduce its expenses and ...
  4. Allocation Of Plan Assets On Termination

    The procedure that occurs upon the termination of any kind of ...
  5. Wrongful Termination Claim

    A claim filed in a court of law by someone who believes they ...
  6. Severance Pay

    The compensation that an employer provides to an employee who ...
Related Articles
  1. Retirement

    How To Lay Off Staff

    Firing employees isn't easy, but it is simple: be honest, be compassionate and be quick
  2. Personal Finance

    Life Insurance Plans to Help Your Small Business Retain Employees

    How to use and design cash value life insurance plans as an incentive to help attract and retain key employees.
  3. Professionals

    Other Employee Benefits

    Other Employee Benefits
  4. Professionals

    Split-Dollar Life Insurance

    Split-Dollar Life Insurance
  5. Professionals

    Split Dollar Life Insurance: How it Works

    Understanding how split dollar life insurance plans are designed and what tax regulations they must follow.
  6. Entrepreneurship

    Company Policies you Did Not Know Might Be Illegal

    While you need an employee handbook to maintain law and order, trying to enforce illegal policies can land you in hot water.
  7. Professionals

    COBRA and HIPAA Provisions

    CFP Study Guide - Group Medical Insurance - COBRA and HIPAA Provisions
  8. Professionals

    Fringe Benefits

    CFP Online Study Guide - Employee Benefits Planning - Fringe Benefits
  9. Investing Basics

    What is Terminal Value?

    The terminal value of an asset is its anticipated value on a certain date in the future.
  10. Professionals

    Employee Stock Options

    Employee Stock Options
RELATED FAQS
  1. What can cause the terminal growth rate to be negative?

    Learn about the assumptions built into terminal valuations and in what circumstances the applied terminal growth rate might ... Read Answer >>
  2. How can an investor terminate a derivative contract?

    Read a brief overview about some of the different ways that derivatives traders can terminate their contracts early, including ... Read Answer >>
  3. What does a merger or acquisition mean for the target company's employees?

    Learn about the likely impacts of a mergers & acquisition deal on the target company's employees, their benefits and adjusting ... Read Answer >>
  4. When evaluating terminal value, should I use the perpetuity growth model or the exit ...

    Examine the important calculation of a terminal value in discounted cash flow analysis, and learn which method of calculating ... Read Answer >>
  5. Can LLCs have employees?

    Discover how limited liability corporations (LLC) can have an unlimited number of employees and the legal steps required ... Read Answer >>
  6. When and why should the terminal value be discounted?

    Find out why investors use the terminal value, why the terminal value is discounted to the present day, and how it's related ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center