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Dierence Between Laid-o and Fired

November30,2016BySurbhiS LeaveaComment

Whenanemployeeleavestheorganisation,thesituationisknownasseparation.
Thecauseofseparationcanbevoluntaryorinvoluntary.Intheformer,the
employeedecidestoterminatehis/herrelationshipwiththeemployer,butwhen
theemployerinitiatestheseparation,itisaninvoluntaryseparation.Beinglaidoff
andfiredaretwotypesofinvoluntaryseparation,whereinlaidoffisduetothe
inabilityoftheemployertogiveemploymenttotheemployee.Ontheotherhand,
firingofanemployeeoccurswhentheemployeeisterminatedduetohis/herfault.
Thearticlepresentedtoyou,explainsthedifferencebetweenlaidoffandfired,in
detail.
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Content: Laid-o Vs Fired

1.ComparisonChart
2.Definition
3.KeyDifferences
4.Similarities
5.Conclusion

Comparison Chart

BASISFOR
LAIDOFF FIRED
COMPARISON

Meaning Layoffimpliestheprovisional Inbusinessterms,fire

suspensionofanemployeeora meanstoreducean
groupofemployeesfromwork employeefromwork,
bytheemployer,duetothe againsthis/herwill,due
company'sinabilitytoprovide tounderperformanceor
employment. seriousinfraction.

Nature Temporary Permanent

Causedby Downsizing,restructuringor Employee'smisconduct,

economicdownturn. poorperformanceor
violationofpolicies.

Compensation Granted Notgranted

Position Notrefilled Refilled

 BASISFOR
LAIDOFF FIRED
COMPARISON

New Easytofind Difficulttofind

employment

Degreeof Low High

severity

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Denition of Lay-o
Thetermlayoffisusedtoreferasituationwhenanemployeeoragroupof
employeesaretemporarilyseparated,attheinstanceoftheemployer,forreasons
suchasslowdownorcyclicalslumpinrevenue.Itisaninvoluntaryreductioninthe
workforce,duetofailure,refusaloremployersinabilitytoprovideemploymentto
anemployee,whosenameexistonrolls.

Thesituationmaybeexperiencedbecauseofmachinerybreakdown,economic
recession,insufficiencyofrawmaterials,accumulationofstockandsoforth.

Layoffoccursforaspecifiedperiod,aftertheexpiryofwhichtheemployeeis
recalledtojointhejobagain.However,thetermoflayoffcanbeextendedtoany
lengthoftime,andsotheemployercannotanticipate,howlongthesituationmay
continue.Duringthistime,theemployeeispaidcompensation,whichisequivalent
to50%ofthebasicsalary.
Denition of Fire
Tofiremeanstoputanendtotheemployment,initiatedbytheemployeragainst
thewilloftheemployee.Alsoknownasdismissalordischarge,itisadrasticstep,
takenbytheemployer,afterconsideringalltheparameters,suchasthe
performance,competence,skills,etc.

Thedecisiontofireanemployeemustbesupportedbyjustandfairreasonswhich
couldbeexcessiveabsenteeism,theftofcompanysproperty,seriousmisconduct,
disobedience,harassingcoworkers,poorperformance,reportingtoanofficeinan
intoxicatedstate,incompetence,etc.Oncetheemployeeisfired,duetohisown
fault,itistoughtofindanewjob,especiallywhenthecauseforfiringisserious
infringement.

Key Dierences Between Laid-o and Fired

Thepointsgivenbelowarenoteworthy,sofarasthedifferencebetweenlaid
offandfiredisconcerned:

1.Theprovisionalsuspensionofanemployeeoragroupofemployees
fromworkbytheemployer,duetothecompanysinabilitytoprovide
employment,iscalledlayoff.Thereductionofanemployeefromwork
bytheemployer,againstemployeeswill,duetounderperformanceor
seriousinfractionisknownasfire.

2.Layoffisatemporarysituation,i.e.theemployeemightberecalledby
theemployerfordutywhenthetermoflayoffisover.Onthecontrary,
whenanemployeeisfired,thereisnochanceofgettingthe
employmentback,i.e.itispermanent.

3.Thereasonsforlayoffincludedownsizing,restructuringoreconomic
downturn.Asagainstthis,apersonmaybefiredbecauseofhisown
misconduct,incompetenceorinsubordination.

4.Whenanemployeeislaidoffbythecompany,he/sheiseligibleto
receivecompensation.Conversely,whentheemployeeisfired,he/she
isnotentitledtoreceivecompensationfromtheemployer.

5.Aftertermination,thepositionofalaidoffemployeeremainsvacant,
whereasthefiredemployeeisimmediatelyreplacedwithanewone.

6.Whentheemployeeislaidoff,he/shecaneasilyfindanewjob,asthe
reasonforlaidoffisbeyondanybodyscontrol.However,whenan
 employeeisfired,itishardtofindanewjob,becausehewas
terminatedfromthejobbecauseofhisperformanceorbehaviour,
whichadverselyaffectshis/herresume.

7.Thesituationofbeinglaidoffislesssevere,ascomparedtobeing
fired.

Similarities
Bothlaidoffandfired,referstoemployeescessationfromwork,i.e.he/sheisno
longerregardedemployedbythecompany.Theinitiativeofterminationistakenby
theemployer.Theemployeeisnotgoingtoreceivewagesorotherbenefitsfrom
thecompanyanymore.

Conclusion
Whilelaidoffentitlesanemployeeforcompensationandotherunemployment
benefits,thisisnotinthecaseofbeingfired,because,itoccursduetohisown
fault.Bothlaidoffandfiredaretheworstthingthatcanhappentoanemployee,
whoissolebreadearnerinhis/herfamily,asitisverydifficulttofindanewjob
immediately.Themostimportantdifferencesbetweenthesetwoinvoluntary
terminationsaresemantics.

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