Zero layoff policy,
Definition of Zero layoff policy:
A company policy based on a guiding principle that the welfare of employees should not be harmed due to economic factors that adversely impact the bottom line. When such policies are adopted companies will seek to mitigate losses through other means rather than layoffs. Employees are still subject to termination based on performance or ethical measures.
A zero layoff policy means that an employer will do everything in its power to avoid terminating employees when the economy falls into a recession. This may include salary cuts, cuts to benefits, natural attrition, moving employees to part-time schedules or other cost-cutting means. A zero layoff policy runs contrary to the current habit of treating employees like free agents, almost devoid of any sense of loyalty on both sides. Such a policy is seen by some as a throwback to times of greater paternalism among employers. Having a zero layoff policy has a positive effect on employee morale, especially during rough economic times, as employees do not have to fear being unemployed. Companies that employ zero layoff policies frequently find themselves in lists of top places to work.
A zero layoff policy dictates that no employees shall be terminated as a result of business-based purposes dictated by the economy. This policy does not exempt termination as a result of poor performance or other violations of the employment contract, such as ethical lapses. Such policies are enacted in recognition that the welfare of employees should not be harmed due to economic factors that are out of their control. A zero layoffs policy may also be referred to as a "no layoffs policy.".
Meaning of Zero layoff policy & Zero layoff policy Definition