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Warning
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Simple English definitions for legal terms
reduction in force
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A quick definition of reduction in force:
A reduction in force, also known as a layoff, is when an employer ends the employment of many workers in a short amount of time. This can be temporary or permanent. A mass layoff is when at least 500 full-time employees lose work at a single site for 30 days or more, or when 50 or more full-time employees lose work if they make up at least 33% of the employees at that site. This is covered under the Worker Adjustment and Retraining Notification Act.
A more thorough explanation:
A reduction in force, also known as a layoff, is when an employer terminates the employment of many employees in a short amount of time. This can be either temporary or permanent.
For example, if a company is experiencing financial difficulties and needs to cut costs, they may decide to lay off a large number of employees. This would be considered a reduction in force.
Under the Worker Adjustment and Retraining Notification Act, a reduction in force that results in the loss of work at a single site, of 30 days or more, for at least 500 full-time employees, or 50 or more full-time employees if they make up at least 33% of the employees at that site, is considered a mass layoff.
Overall, a reduction in force is a significant event that can have a major impact on both the affected employees and the company itself.