# What is a Layoff?

A layoff is a temporary suspension of work, often due to financial or seasonal reasons. SMEs must communicate clearly and follow local rules.

Source: https://faqtic.co/glossary/layoff

## Why it Matters for SMEs

- Manages downturns
- Reduces costs
- Maintains relationships

## Example in Practice

Factorial logs layoff periods with recall rights.

## Frequently Asked Questions

### Difference from redundancy?

Layoff is temporary, redundancy permanent.

### Pay during layoff?

Varies by country.

### Can staff return?

Yes, when work resumes.

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