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In America, where most workers work under what is called the "at will" arrangement (i.e. either side can terminate employment at any time), it is routine for mass layoffs at large companies to be structured so as to eliminate the possibility of discrimination lawsuits. The typical "layoff" package (it's not really a layoff, because that implies re-hiring on a seniority basis as is done under some uniion contracts) includes the following:

  • A fixed sum of money roughly comparable to one year's gross wages.
  • An agreement on the ex-employee's part to not sue, the penalty being the loss of the money.
  • A statement about how long before the employee can apply to work at the company again, typically a year.
  • A summary of the demographics of the layoff, showing the total population in each of several classes, and the layoff number in each class. The company might have 10% of its employees over age 60, say, and the layoff summary would show that 10% of those losing their jobs are also over 60.

This "programmatic" selection of people to be made redundant is done by a computer program in the human resources department, and can be quite brutal. For example, long-term highly skilled employees may be let go simply in order to meet a demographic requirement.
by asdf on Mon Mar 6th, 2006 at 08:02:55 PM EST
[ Parent ]
The amount of severance pay differs from industry to industry and company to company in the US.  There is are no legal requirements so sometimes it is zero.  Two to three months is more common.  Six is considered extremely generous.

I've never heard of a restriction on how long you'd have to wait to be rehired.  

by Monkey In Chief on Tue Mar 7th, 2006 at 01:28:38 AM EST
[ Parent ]
When it comes to France, should this new contract be implemented, the layoff would take place without any compensation being due to the employee since the layoff takes place during the trial period.

That would be the big change vs the current practise : when fired, an employee under a fixed term or an unlimited term contract is entitled to compensation according to the motives that have led to the termination of the contract by the employer.
The lack of compensation is valid only when the redundancy occurs as a consequence of gross or/and wilful misconduct.

When through hell, just keep going. W. Churchill

by Agnes a Paris on Tue Mar 7th, 2006 at 03:08:51 AM EST
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