What is one characteristic of a layoff?

A layoff is often characterized by the need to reduce the workforce due to various external factors, one of the most common being economic conditions. Companies may face financial challenges, downturns in business, or shifts in market demand that render it necessary to decrease the number of employees temporarily or permanently. This action helps the organization manage its costs and remain viable in a competitive environment.

Unlike permanent actions, layoffs can be temporary, with the possibility of rehiring employees when conditions improve. It's important to note that layoffs are typically initiated by the employer, not the employee, making them distinct from voluntary resignations. Additionally, while rehiring may happen, it is not guaranteed immediately following a layoff. Thus, the connection between layoffs and economic conditions is a key aspect of understanding why layoffs occur within the context of employment law.