A zero layoff policy dictates that no employees shall be terminated as a result of business-based purposes dictated by the economy. This policy does not exempt termination as a result of poor performance or other violations of the employment contract, such as ethical lapses. Such policies are enacted in recognition that the welfare of employees should not be harmed due to economic factors that are out of their control. A zero layoffs policy may also be referred to as a no layoffs policy.
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