What To Do If Employees Ask to Be Laid Off

Employers often dread layoffs—but what happens when an employee requests one? While it may seem unusual, there are various reasons why an employee might ask to be laid off. Understanding the motivations behind these requests and the best way to handle them is crucial for HR professionals.

What is a Voluntary Layoff?

A voluntary layoff occurs when a company offers employees an incentive—such as a severance package—to leave their position voluntarily. This approach is often used when an organization needs to reduce its workforce while minimizing the impact on morale and reputation. 

Check out our HR Party of One video below for more information on severance packages.

What’s the Difference Between a Furlough and a Layoff?

• Furlough: A temporary, unpaid leave where employees remain on payroll but do not work for a set period. Employers typically use furloughs when they anticipate rehiring employees in the near future.
• Layoff: A permanent separation due to downsizing, restructuring, or economic challenges. Unlike furloughs, layoffs often result in the termination of employment with no guaranteed return.

Why Would an Employee Request a Layoff?

While most employees strive for job security, there are several reasons why someone might ask to be laid off:

• Early Retirement Incentives: Employees nearing retirement may see voluntary layoffs as an opportunity to leave early with a financial cushion.
• Career Transitions: Some employees seeking a career change may prefer a layoff over quitting, as they could potentially qualify for unemployment benefits while job hunting.
• Health & Family Considerations: Employees with health concerns or caregiving responsibilities may no longer find it feasible to stay in their role.
• Company Relocation: If an organization moves to a new location, employees who cannot relocate may request a layoff instead of resigning

How Should HR Respond to Voluntary Layoffs?

When faced with an employee requesting a layoff, HR should take a strategic and empathetic approach. First, assess the situation by determining whether the request is driven by personal reasons, financial concerns, or dissatisfaction with the role. Consider if the employee’s concerns can be addressed through alternative solutions such as flexible work arrangements or internal transfers.

Next, educate employees on the financial and legal implications, as some employees who voluntarily leave may not qualify for unemployment benefits, and layoffs may result in gaps in health insurance coverage.

Employers should also explore alternative solutions, such as encouraging employees to utilize available paid time off or leverage Employee Assistance Programs (EAPs) for mental health support and career coaching.

For more information on EAPs, view our HR Party of One video below!

Additional Resources

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• BernieU—free online HR courses, approved for SHRM and HRCI recertification credit
• BerniePortal Blog—a one-stop shop for HR industry news
• HR Glossary—featuring the most common HR terms, acronyms, and compliance
• Resource Library—essential guides covering a comprehensive list of HR topics
• HR Party of One—our popular YouTube series and podcast, covering emerging HR trends and enduring HR topics
• Community—the HR Party of One Community forum, a place devoted to HR professionals to ask questions, learn more, and help others