how a zero layoff policy works
a zero layoff policy means that an employer will do everything in its power to avoid terminating employees when the economy falls into a recession this may include salary cuts cuts to benefits natural attrition moving employees to part time schedules or other cost cutting means a zero layoff policy runs contrary to the current habit of treating employees like free agents almost devoid of any sense of loyalty on both sides such a policy is seen by some as a throwback to times of greater paternalism among employers having a zero layoff policy has a positive effect on employee morale especially during rough economic times as employees do not have to fear being unemployed companies that employ zero layoff policies frequently find themselves in lists of top places to work special considerationsa zero layoff policy is especially evident in recessionary times when most companies will cut headcount in order to improve their financial position companies that employ a zero layoff policy tend to treat employees like investments they hire carefully and tend to train their employees to cover a variety of jobs zero layoff policy examplesas of the third quarter of 2020 the following companies have never laid off an employee some have been able to maintain a zero layoff policy due to steady growth and lean operating principles as well as engendering a sense of teamwork among employees that makes occasional belt tightening more palatable however as the impact of covid 19 drags on some of the companies have warned that layoffs may end up happening 