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Voluntary Layoff Letter

Includes free templates and frequently asked questions.
By Paul Peters, Updated Mar 16, 2023
Employee handed a voluntary layoff letter

A voluntary layoff is a layoff that is initiated by an employee rather than an employer. In this situation, employees volunteer to be laid off in exchange for a severance package. This differs from a traditional layoff in which management chooses individuals to be laid off.

During budget cuts or an economic downturn, some businesses may issue a call for voluntary layoffs and give their employees the option of requesting to be laid off. This call takes the form of a voluntary layoff letter.

Businesses will sometimes send out a voluntary layoff letter notifying employees of their options so that they do not have to resort to involuntary layoffs.

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Voluntary Layoff Letter Template

Voluntary Layoff Letter Template:

Use this general voluntary layoff letter in Microsoft Word format to create a customized letter for your employees.

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Why Do Companies do Voluntary Separation?

  • It is a show of good faith to employees.
  • A voluntary layoff prevents retaliation by former employees.
  • The workforce can be reduced without forcing people out.
  • Some employees may be ready to retire from their position.
How To Prepare For a Layoff

How To Prepare For a Layoff

A complete step-by-step guide on how to prepare yourself for a layoff before it happens.

FAQs:

Can you collect unemployment for a voluntary layoff?

If you ask for a voluntary layoff, you may not be able to collect unemployment. Some states will allow you to collect unemployment even after a voluntary layoff, but many deny your request since it was your decision to leave. Check with your state to find out.

Can you ask for a voluntary layoff?

Yes. Even if a business does not issue a call for voluntary layoffs, you can request one and start a conversation with management about what they might be willing to do.

What does involuntary layoff mean?

An involuntary layoff is a layoff that is chosen by management. In other words, the employee has no choice.

Should I take voluntary severance?

Every situation is different, so the choice is up to you. If you want to keep working, then you don't have to sign up for a voluntary severance package. However, if you like the severance terms, it may be worth considering.

What is a voluntary severance package?

A voluntary severance package is a package this is offered to anyone in a business who volunteers to be laid off. The severance package may include continued pay for a limited period of time, access to group benefits, and more.

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How To Prepare For a Layoff

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