Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Zero Layoff Policy

What it is:

A zero-layoff policy is a company policy that prohibits laying off employees.

How it works (Example):

Let's assume Company XYZ is an organic grocery chain that has a zero layoff policy. The policy states that Company XYZ will not lay off employees if the company is suffering for reasons resulting from the economy. Employees who violate company policies, fail to show up for work or don't perform as expected can still be terminated.

Why it Matters:

Zero layoff policies can be helpful for improving employee morale, but they also can hinder cost-cutting measures that can save struggling companies.