Layoff generally refers to having some employees take time off, with the expectation that they will come back to work. With layoffs, three conditions are usually present: (1) there is no work available for these employees, (2) management expects the no-work situation to be temporary and probably short term, and (3) management intends to recall employees when work is again available. A layoff is therefore not a termination, which is permanent severing of the employment relationship. Many employers, however, do use the term layoff as a euphemism for discharge or termination. (Others have taken to calling them “productivity transformation programs.”)
Definition