McOmber McOmber & Luber, P.C.

Business & Employment Lawyers Red Bank & Marlton New Jersey

732-842-6501

What Is the Difference Between Reduction in Force (RIF) and Layoffs?

A reduction in force (RIF) is the permanent termination of employees due to restructuring, the elimination of their department, or a lack of funding or available work to support those employees. A layoff, on the other hand, technically means that the termination is only temporary. However, it has come to mean a permanent termination in recent years, and in many cases, employers use it to mean exactly that. Individuals who lose their jobs to RIF and layoffs are entitled to collect unemployment benefits. In addition, if your employment contract included a severance pay clause, you are entitled to receive this payment. If you believe you have been wrongfully terminated, reach out to our office for a free consultation.

Related FAQs

  • What Role Does My Employment Contract Play In Helping My Wrongful Termination Case?

    Your employment contract could potentially help your wrongful termination case. Another exception to at-will employment is the existence of an employment contract which sets forth:

    • Acceptable grounds for termination; and
    • Procedures and protocols to be followed by an employer when termination of employment will be sought.

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  • Can I File for Unemployment if I Am on Strike?

    In New Jersey, workers involved in labor disputes may have the option to file for unemployment. This legislation allows striking workers to collect these benefits if their employer breaks the stipulations outlined in their employment contract or collective bargaining agreement. Additionally, employees could be entitled even if the disagreement is not related to their company’s refusal to follow the employment contract’s terms. There is a mandatory 30-day waiting period for filing claims.

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  • What Is the NJ WARN Act?

    The New Jersey Millville Dallas Airmotive Plant Job Loss Notification Act (NJ WARN) expands part of the Federal WARN Act by requiring notice even when the employment losses result from a sale of a business.

    The NJ WARN Act also contains strict provisions with respect to job transfer circumstances and penalties for employers violating the Act.

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  • What is an Implied Contract?

    Implied contracts are a confusing area of at-will employment which can be easily misunderstood, but can also frequently benefit an employee in employee/employer relations. There are two types of implied contracts, implied in-fact and implied in-law.

    If a contract is implied in-fact, that means that the obligation is created between these parties due to the facts of the situation. If the parties’ conduct suggests an understanding, the law may find an implied in-fact contract. An example of this would be an individual being paid to mow a neighbor’s lawn several weeks in a row, only for the “employer” to refuse payment the fourth week. The law would find that an implied contract existed between the two.

    An implied in-law contract is a situation in which the law imposes a duty to fulfill an unwritten contract. This can apply even if it is against an individual’s will. For example, if a doctor saves a bystander’s life, they are justified in billing the individual for their services.

    Read More

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