Lay-off

msoto

One of our managers terminated an employee due to his work perfomance, he called the termination a "lay-off." Is there a difference between a lay-off and a termination?

Margaret Morford

Absolutely! If someone is laid-off, the company has no work for them. This means he/she will not be replaced. If the person laid off happens to be in any protected class, are told he/she is laid off and then the company replaces him/her, you can have significant legal problems explaining this to the EEOC because there is work available for this person. Any employee who is laid off is eligible to collect unemployment if he/she has been with your company long enough.

If an employee is terminated for cause (work performance), then he/she can be replaced with miminal concern about legal issues. Depending upon your state unemployment laws, he/she may or may not be able to collect unemployment.

However, if your company was planning on eliminating a position, it is perfectly legimate to lay off your poorest performer. That may be your explaination to the EEOC if you are challenged, but you would have to make sure you are not hiring people into the job from which this individual was laid off.

Margaret Morford
theHRedge

Theresa Gegen TX

Margaret is right on.

An employee who is "laid off" is usually not replaced, and may be recalled or rehired. An employee who is terminated for a performance reason is usually not eligible for rehire.

If an employee is told that he or she was "laid off" and then sees that the company has hired a replacment, the employee will think "The real reason I was fired was because of my age, race, etc." There is a good chance a jury will believe the employee.

The bottom line is that employers must give true reasons for the termination.

Good luck!