Zero Layoff Policy
What Is a Zero Layoff Policy?
A zero layoff policy directs that no employees will be terminated because of business-based purposes directed by the economy. This policy doesn't exempt termination because of poor performance or different infringement of the employment contract, like ethical failures.
Such policies are sanctioned in recognition that the welfare of employees ought not be hurt due to economic factors that are beyond their control. A zero layoff policy may likewise be alluded to as a "no layoffs policy."
How a Zero Layoff Policy Works
A zero layoff policy means that an employer will do everything possible to try not to fire employees when the economy falls into a recession. This might incorporate salary cuts, cuts to benefits, natural attrition, moving employees to parttime timetables, or other cost-cutting means.
A zero layoff policy runs in opposition to the current propensity for dealing with employees like free agents, practically without any trace of any feeling of loyalty on the two sides. Such a policy is considered by some to be a throwback to times of greater paternalism among employers. Having a zero layoff policy decidedly affects employee spirit, especially during unpleasant economic times, as employees don't need to fear being jobless. Companies that utilize zero layoff policies habitually wind up in arrangements of top work environments.
Special Considerations
A zero layoff policy is especially obvious in recessionary times when most companies will cut headcount to advance their financial position. Companies that utilize a zero layoff policy will more often than not deal with employees like investments. They hire carefully and will generally prepare their employees to cover various positions.
Zero Layoff Policy Examples
As of the second from last quarter of 2020, the following companies have never laid off an employee. Some have had the option to keep a zero layoff policy due to consistent growth and lean operating principles, as well as inciting a feeling of collaboration among employees that makes infrequent belt-fixing more palatable. Notwithstanding, as the impact of COVID-19 hauls on, a portion of the companies have cautioned that layoffs might wind up occurring.
- Southwest Airlines: The low-cost airline accepts that its zero-layoff policy adds to its triumphant mentality. It has managed to stay away from layoffs and leaves even in the midst of the impact of COVID-19 on its industry yet has expressed that without greater government help, it should make cuts.
- NuStar Energy: Despite the volatility of the energy industry and impact from COVID-19, this San Antonio, Texas, company has kept a zero layoff policy.
- Nucor: This steel company has developed starting around 2009 and has long had a no-layoff policy. However, in the midst of the COVID-19 pandemic, the company has needed to rebuild its operations in Alabama and reduce the labor force by north of 200. Nucor has said it has offered to hire those employees in different sections of the company.
- Publix: This Southern supermarket chain is reliably positioned among the best work environments in America and elements a zero layoff policy. The company has hired thousands of additional individuals during the pandemic.
Features
- A zero layoff policy is a form of protection offered to employees, should the company's business decline because of a debilitating economy.
- Nonetheless, an employee can in any case be let go for poor performance, ethical infringement, or behavior that would bring about termination no matter what the state of the economy.
- The policy means that employees will not be fired due to conditions unchangeable as far as they might be concerned, like a recession.
