Editing Layoff (section)

== Unemployment compensation ==
Risks of being laid off vary depending on the workplace and country a person is working in. Unemployment compensation in any country or workplace typically has two main factors. The first factor of unemployment compensation depends on the distribution of unemployment benefits in a workplace outlined in an [[employee handbook]]. The second factor is the risk of inequality being conditioned upon the political regime type in the country an employee is working in.<ref>{{cite journal |last1=Kim |first1=Wonik |title=Unemployment Risks and the Origins of Unemployment Compensation |journal=Studies in Comparative International Development |date=March 2010 |volume=45 |issue=1 |pages=57–82 |doi=10.1007/s12116-009-9057-9 }}</ref> The amount of compensation will usually depend on what level the employee holds in the company.

Packages may also vary if the employee is laid off, or voluntarily quits in the face of a layoff (VRIF). The method of separation may have an effect on a former employee's ability to collect whatever form of [[unemployment compensation]] might be available in their [[jurisdiction]]. In many U.S. states, workers who are laid off can file an unemployment claim and receive compensation. Depending on local or state laws, workers who leave voluntarily are generally ineligible to collect unemployment benefits, as are those who are fired for gross misconduct. Also, lay-offs due to a firm's moving production overseas may entitle one to increased re-training benefits. Some companies in the United States utilize Supplemental Unemployment Benefits.<ref name=Lihzis2016>{{cite web |url=http://subpay.com/solutions-for-managing-layoffs/sub-pay-plan-legal-precedent-the-origins-and-background |title=SUB-Pay Plan Legal Precedent |publisher=Subpay.com |access-date=2012-03-13 |url-status=dead |archive-url=https://web.archive.org/web/20120331044842/http://subpay.com/solutions-for-managing-layoffs/sub-pay-plan-legal-precedent-the-origins-and-background |archive-date=2012-03-31 }}</ref> Since they were first introduced by organized labor and the [[U.S. Department of Labor|Department of Labor]] in the early 1950s, and first issued in a Revenue Ruling by the [[IRS]] in 1956,<ref>{{cite web|url=http://blog.subpay.com/2011/05/17/what-are-supplemental-unemployment-benefits/|title=What are Supplemental Unemployment Benefits?|website=Total Management Solutions|archive-url=https://web.archive.org/web/20110610155850/http://blog.subpay.com/2011/05/17/what-are-supplemental-unemployment-benefits/|archive-date=June 10, 2011|url-status=dead}}</ref> SUB-Pay Plans have enabled employers to supplement the receipt of state unemployment insurance benefits for employees that experience an involuntary layoff. By establishing severance payments as SUB-Pay benefits, the payments are not considered wages for [[FICA]], [[Federal Unemployment Tax Act|FUTA]], and SUI tax purposes, and employee FICA tax. To qualify for SUB-Pay benefits, the participant must be eligible for state unemployment insurance benefits and the separation benefit must be paid on a periodic basis. There have also been increasing concerns about the organizational effectiveness of the post-downsized 'anorexic organization'. The benefits, which organizations claim to be seeking from downsizing, center on savings in labor costs, speedier decision making, better communication, reduced product development time, enhanced involvement of employees and greater responsiveness to customers (De Meuse et al. 1997, p.&nbsp;168). However, some writers draw attention to the 'obsessive' pursuit of downsizing to the point of self-starvation marked by excessive cost-cutting, organ failure and extreme pathological fear of becoming inefficient. Hence 'trimming' and 'tightening belts' are the order of the day.<ref name=TylerWilkinson2007>{{cite journal |last1=Tyler |first1=Melissa |last2=Wilkinson |first2=Adrian |title=The tyranny of corporate slenderness: 'corporate anorexia' as a metaphor for our age |journal=Work, Employment and Society |date=September 2007 |volume=21 |issue=3 |pages=537–549 |doi=10.1177/0950017007080015 }}</ref>