Layoff FAQs for Employees

​The following frequently asked questions and answers are being provided to assist employees impacted by [company name]'s temporary layoff.

How were employees selected for layoff?

[Company name] procedures for layoff selection include an objective review of each position within affected departments. Criteria includes [insert criteria used such as job classification (temporary, part time) skill set, performance and seniority].

What happens to my health insurance?

During a temporary layoff, health insurance benefits will continue, and employee contributions will continue to accrue. Employees will be responsible for catching up on outstanding contributions upon return to work. According to our health plan documents, employees can be absent from work for a maximum of [number] consecutive days before health insurance coverage ends. If the layoff extends beyond [number] days, COBRA continuation coverage will be offered.

Can I use my PTO?

No. The intent of this layoff is to ensure the financial stability of [Company name]. As such, we are unable to pay employees or allow the use of paid time off during this period. [Check your state vacation/sick leave laws to ensure this is permitted.]

Can I collect unemployment?

Unemployment benefits may be an option during a temporary layoff. Because state unemployment rules differ, please contact your local unemployment office for guidance on eligibility and the application process.

When can I return to work?

We expect this layoff to extend until [date] at a minimum. Employees will be recalled to work as business needs warrant based on job function and seniority.

Do I have to re-apply for my position?

No. Employees will be recalled to work in their original positions as business needs warrant.

How much notice will I receive before being recalled to work?

Employees will be given at least three days' notice of recall. For example, an employee may be informed on Friday that they should return to work on Monday. An employee who is not able to return to work within five days of recall will be considered to have refused the offer of work and voluntarily resigned.

Will I be eligible for severance pay?

No. This layoff is expected to be temporary, and we expect to recall employees back to work. However, should a reduction in force become necessary, severance pay offerings will be communicated at that time.

Can I be laid off while I am on medical/maternity leave?

Yes. The layoff will apply to all impacted positions regardless of leave status. Employees on any type of leave will be notified by phone and mail.

Can I apply for another position within the company not impacted by layoffs?

A hiring freeze has been implemented at this time, and we are not filling nonessential positions throughout the company. Should an essential position become available, the opening will be posted on the company intranet, and employees on layoff status will be given the opportunity to apply.

Can I accept other outside temporary employment during the layoff?

Yes. Employees may seek outside employment during the layoff. If you find alternate employment during this period and do not intend to return to work at [Company name], please notify human resources immediately of your voluntary resignation.

If I am recalled to work, will my seniority with the company change?

Credit for seniority will continue if the layoff does not exceed [number] days. Employees laid off for more than [number] days and subsequently recalled within [number] months from the date of layoff will be credited with the service accumulated at the time of layoff.