A layoff letter is a piece of writing to inform the employees about their termination. A layoff can be of two types, i.e., permanent or temporary. In a temporary layoff letter, the company will likely inform us of the date of suspension and rejoining. Sometimes, due to uncertainty, the company may suspend the back-to-office date and keep it suspended depending on the situation to get better. This is often done when the company is suffering from poor economic conditions resulting in difficulties in maintaining the profitability in the company’s budget.
Sometimes, a company downsizes to restructure its faculty. The layoff is sometimes permanent and sometimes temporary, as the company can rehire the candidates after the restructuring is done or the economic position is stabilized.
Certain procedures must be followed while making such layoffs. The company should keep the layoff policies and legalities in view while making the execution of the layoff process official. A few companies also pay an amount to the employees as a layoff is a sudden termination. Sometimes, a layoff is made when downsizing is done by transferring the business to other companies or organizations. An economic downturn happens when demand for production flattens and declines.
While writing a letter like that, do not forget to mention the benefits you might give employees. There are chances of legal proceedings against the company if not taken proper measures to cope with any kind of legal errors. Make the following things sure:
- Legal conformity
- Proper communications
- Outplacement, i.e., employee assistance
Two sample letters are given below that are layoff letters due to downsizing:
1-
Re. Layoff due to Downsizing
Dear Markel,
I am Nisen Sharkal, the General Manager, writing to bring important information into your account. The lack of work has thrown the company into a tough time due to economic decline and difficulties. These difficulties have led us to make some terrible decisions. One of those decisions is to lay off some of our employees. According to the decision taken by the company’s Board of Directors, which includes the Director-General, Managing Director, and our reverend CEO, we are obligated to terminate a few employees permanently.
Due to the dearth of gravity of the situation, we have decided to terminate you permanently because the company is not sure about the time period within which the situation can get better. I can completely understand your feelings in this grave situation due to this sudden act. Still, as has already been mentioned, we have decided this to balance the company’s economic difficulties.
To bring comfort to you in this sad moment, the CEO has decided to give $1000 to you to manage your basic livelihood till your next employment.
The company regrets making such a decision, but the business world is unpredictable and implies you make such unfavorable decisions. In this moment of gravity, the company will not forget to appreciate your sincere efforts for the company and the quality of work you produce. The company cannot thank you enough. Moreover, I hope you will understand this grave matter. Thank you.
Sincerely,
Signature
File: Word (.docx) 2007+ and iPad
Size 21 Kb
Download
2-
Re. Temporary Termination due to Downsizing
Dear Sen,
This letter aims to inform you that King Overo has decided to terminate you temporarily due to downsizing. The company tried to explore other solutions to curb this serious situation, but all in vain, and it became unsuccessful immediately. The company faced this downsize due to huge financial disturbances and a lack of work. The company has decided to restructure its faculty.
You have served the company for seven years, and the company appreciates the services you have performed until now. Appreciating your services, it has been decided that the layoff at your designation will be temporary. The situation has been serious, and after long reviews, it has been decided to reduce the approximate workforce to ensure financial stability.
Your termination will be effective from 1 August 20XX to 1 October 20XX. The Human Resources department will contact you soon this week. I hope you will understand the gravity of the situation and cooperate accordingly. We are grateful to you and appreciate your coordination. For further queries, you can visit the Human Resource Department Admin or write the matter to [email].
Sincerely,
Signature
File: Word (.docx) 2007+ and iPad
Size 22 Kb
Download
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