If the amount of work in the company temporarily decreases, a
company may lay off employees instead of terminating their
employment. Laying off employees is provided for by the Employment
Contracts Act, according to which laying off means temporary
interruption of work and payment of salary while the employment
relationship remains in force.
Employees may be laid off for a fixed period or indefinitely and
may be implemented as a full-time or a part-time lay off. During a
full-time lay off work and payment of salary is interrupted
completely, whereas in connection with a part-time layoff the
employee's working hours are reduced.
A lay off can be based on an employer decision or an agreement
between the employer and the employee made on the employer's
initiative.
