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

    Split Dollar Life Insurance: How it Works

    Understanding how split dollar life insurance plans are designed and what tax regulations they must follow.
  4. 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.
  5. Investing Basics

    What is Terminal Value?

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

    3 Reasons to Develop an Employee Handbook for Your Small Business

    Learn how a small business can benefit from an employee handbook covering labor laws, codes of conduct, leave policies and media relations.
  7. Investing

    4 Reasons Employee Wellness Matters

    Employees want more than a paycheck. They want rich benefits that include a health and wellness component. Companies that offer it stand to save.
  8. Investing

    Unlimited Vacation Policies: How Much Do You Take?

    A look at what "discretionary time off" policy means and understanding the vacation patterns of U.S. employees.
  9. Entrepreneurship

    5 Low-Cost Perks for Small Business Employees

    Money isn’t the only way to motivate employees. Here are some savvy strategies even the smallest business can use.
  10. Professionals

    Top Job Perks You May Not Have Heard Of

    Companies are becoming increasingly creative with their benefits packages, in order to attract younger employees.
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. 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 >>
  4. Can LLCs have employees?

    Discover how limited liability corporations (LLC) can have an unlimited number of employees and the legal steps required ... Read Answer >>
  5. 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 >>
  6. If my employment with my current firm terminates relatively soon, do I have two years ...

    Yes. When your employment ends with the current firm, your registration with the Financial Industry Regulatory Authority ... Read Answer >>
Hot Definitions
  1. Reverse Mortgage

    A type of mortgage in which a homeowner can borrow money against the value of his or her home. No repayment of the mortgage ...
  2. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  3. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  4. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  5. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  6. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
Trading Center