Maybe it's happened, or about to happen, to you or someone you know. You hear words like reduction-in-force (RIF), layoff, or downsizing in the news or in an email. You’re immediately worried about your job. And you may wonder: Does it make any difference what it's called?
Difference Between a Layoff and a Reduction-In-Force
The end result of a layoff and an RIF is the same: You lose your job for reasons out of your control. However, there may be small differences, including the possibility of being rehired in the future.
In the past, layoffs typically came with an expectation that the employee might be rehired if more work became available or the employer’s financial condition improved. An RIF, on the hand, did not come with such an expectation; it usually meant that a certain position or an entire department was being eliminated.
While this distinction still exists for some employers, other employers may treat layoffs and RIFs the same. Whatever it's called, it might mean that you’re out of a job permanently. (Often, employers use the term "furlough" when they're laying off employees with the expectation that they'll be rehired when the situation changes.)
Legal Issues With Layoffs and RIFs
Unless you have an employment contract, you are most likely an at-will employee. This means that you can be fired at any time, for any reason that isn’t illegal. Likewise, you have the freedom to quit at any time for any reason.
While layoffs and RIFs due to business reasons are perfectly legal, employers can get into trouble if they engage in employment discrimination when carrying out those actions. Employers may not single out certain employees for layoff based on race, gender, age, religion, or another characteristic protected under federal or state antidiscrimination laws. For example, it would be illegal for an employer to decide to lay off the oldest employees at the company. If you believe you were fired due to your age, or your membership in another protected class, you should consult with an employment lawyer right away.
Notice of Layoffs and RIFs
If you’re an at-will employee, your employer usually isn’t required to give you any advance notice of your layoff. However, larger employers may need to give a certain amount of notice when conducting mass layoffs or plant closings. The federal Worker Adjustment and Retraining Notification (WARN) Act, which applies to employers with 100 or more employees, requires employers to give 60 days’ advance notice of plant closings or mass layoffs that will last at least six months.
There are exceptions, however, including when the closing or layoff resulted from a natural disaster or business circumstances that weren't "reasonably foreseeable" 60 days before the layoff. The unforeseeable-circumstances exception would probably apply to mass layoffs due to the COVID-19 pandemic. (Learn more about the WARN Act's notice requirements and exceptions.)
Unemployment Benefits After a Layoff or RIF
Unemployment compensation benefits are meant to help you make ends meet until you find a new job. These benefits are available to employees who lose their jobs through no fault of their own. So if you were laid off or lost your job through an RIF, you will typically be eligible for benefits. (Learn more about unemployment eligibility and benefits.)