How to Do a Temporary Layoff
- 1). Select the least busy time of year for your business to do temporary layoffs. Decide how long this period could last and what kind of guarantees you can deliver in regards to returning to work. Companies may do seasonal layoffs. For example, a landscaping company can implement a temporary layoff in the winter months, calling employees back to work in the spring.
- 2). Ask for volunteers for a layoff. Some employees may want to take advantage of a voluntary layoff, especially with the hope that they can return to their position. Explain to employees that they may be eligible for unemployment benefits and health insurance through the Consolidated Omnibus Budget Reconciliation Act (COBRA). You may attract employees to take the temporary layoff instead of making the decision for them.
- 3). Meet with each employee who you plan to lay off. If this is a sitewide temporary layoff, such as a plant closing for one week, hold an all-staff employee meeting to explain the plan and the necessity for the layoffs. Provide written notice of the separation and a return-to-work date, if known, so employees can file an unemployment benefits claim.
- 4). Stagger the temporary layoffs. Structure layoffs in tiers instead of letting everyone go at the same time. Arrange for groups of employees to go through layoffs during different weeks or months. For instance, department A will be temporary laid off during the first and second weeks and return to work for the third week, while department B begins its layoff on the third week.
