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# A2. Layoff Glossary
- URL: https://www.mattrutherford.co.uk/a2-layoff-glossary/
- Published: 2026-07-26T11:30:47.000Z
- Updated: 2026-07-26T11:30:47.000Z
- Author: Matt
- Tags: Lay Off Field Guide

Layoffs come with their own vocabulary, often used at the exact moment you're least able to look things up. Here's the plain-English version.

**At-will employment** — Mostly a US concept. Either side can end the job at any time, for almost any reason, with no notice required.

**COBRA** — The US mechanism that lets you keep your employer health plan for a period after leaving, usually by paying the full cost yourself.

**Collective consultation** — A legally required group process in much of Europe when redundancies pass a certain number, involving employee representatives and set timelines.

**Compromise agreement** — Older name for a settlement agreement, still used in some places.

**Garden leave** — You're still employed and paid through your notice, but told to stay away from work. Common for senior or sensitive roles.

**Individual consultation** — The one-to-one meetings about your specific role, selection, and alternatives.

**Notice period** — The time between being told and actually leaving, during which you're typically still paid.

**Outplacement** — Career support (coaching, CV help, job-search services) paid for by the employer as part of your exit.

**PILON** — Pay In Lieu Of Notice. They pay out your notice period instead of having you work it.

**Protective award** — Compensation an employer can be ordered to pay for failing to consult properly. In the UK this doubled in April 2026.

**Redundancy** — The UK and Ireland term for a layoff, where the role, not the person, is eliminated.

**Restrictive covenants** — Clauses that limit what you can do after leaving, such as joining a competitor or contacting clients. Often negotiable.

**Selection pool** — The group of comparable roles from which people are chosen for redundancy, using set criteria.

**Settlement agreement** — A legal agreement where you accept terms, usually money, and waive certain rights to bring claims. Normally requires independent legal advice.

**Severance** — The pay and benefits package offered on exit, whether statutory, contractual, or enhanced.

**Statutory redundancy pay** — The legal minimum redundancy payment, calculated from age, service, and a capped weekly figure.

**WARN Act** — The US federal law requiring larger employers to give advance notice of big layoffs. Notice only, not consultation.

**Works council** — An employee representative body, powerful in countries like Germany, that must be consulted on restructuring.