What is a Zero Layoff Policy?

A zero-layoff policy is a company policy that prohibits laying off employees.

How Does a Zero Layoff Policy Work?

Let's assume Company XYZ is an organic grocery chain that has a zero layoff policy. The policy states that Company XYZ will not lay off employees if the company is suffering for reasons resulting from the economy. Employees who violate company policies, fail to show up for work or don't perform as expected can still be terminated.

Why Does a Zero Layoff Policy Matter?

Zero layoff policies can be helpful for improving employee morale, but they also can hinder cost-cutting measures that can save struggling companies.

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Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

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