A2. Layoff Glossary

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.