Almost every company across the globe follow two types of ways to terminate an employee. This is done through fire them or lay them off. It is no surprise if you have come across publicis layoffs 2016. These terms are often confusing and should be understood properly. This will help an employee to know what exactly has happened. Here is what exactly each term means:
Layoff an employee: This is a fault of a company where it needs to reduce the number of employees due to financial or organisational reasons.
Fire an employee: This is a situation when an employee failed to meet the set targets and underperformed or violating any laws or policies of the company.
In order to understand the razorfish layoffs, an individual has to know the laws that play an important role in firing and laying off an employee. Thus, when hiring is filing an employee, it is necessary to know the firing or laying off an employee is illegal for whistleblowing, discrimination or when an employee is on protected leave. So in order to know deep about these two processes, it is necessary to know the complete laws and policies that protect the rights of both employees and employers.
Even it is hard for companies to take any of these decisions as they come up with several costs. Here is a detailed description of costs that are occurred when terminating an employee. As per review of razorfish layoffs, it is clear that a company has to face costs like – severance pay, unemployment insurance and value of unused vacation time.
Severance pay: In some situation, a company needs to pay severance pay to the employee to make the transaction easy.
Unused vacation time: this depends on an individual where a company needs to pay the unused vacation time at the time of leaving a company.
Unemployment insurance: Each year a company has to pay unemployment insurance claims. This situation was noticed in the case of sapient layoffs. If the cases are repeatedly, the unemployment rates are high that puts an additional burden on the company.
Separation pay: This payment is made to an employee in exchange for signing a separation agreement. That wives the right to sue for wrongful termination.