What is a Company Layoff?

Answer:
Company layoffs often occur when a company's revenue

or sales drop, and specific employees are not required to come to work for a specific period of time. If revenue generation is reduced, then the company's labor is not in high demand, and a company layoff might be implemented. A company layoff is temporary, but usually at least a week long. This is not the same as a layoff or a termination, but the company expects the employees to come back to work.

A company layoff means that employee salaries and wages are stopped during the time that the employees do not report to work. The employees' health insurance may or may not be affected, depending on the company and the setup of the group health insurance. Employees cannot use their personal or sick days during a company layoff, but they usually are able to retain the time off once they are reactivated.