1. Human Resources
  2. Employee Relations

Voluntary Layoff Letter

Includes free templates and frequently asked questions.
Paul Peters
By Paul Peters, Mar 16, 2023
Paul Peters is the Chief Editor of Betterteam. He's a former print journalist and small business owner and has written articles for a variety of newspapers, magazines and websites.
Employee handed a voluntary layoff letter

A voluntary layoff is a layoff that is initiated by an employee rather than an employer. In this situation, employees volunteer to be laid off in exchange for a severance package. This differs from a traditional layoff in which management chooses individuals to be laid off.

During budget cuts or an economic downturn, some businesses may issue a call for voluntary layoffs and give their employees the option of requesting to be laid off. This call takes the form of a voluntary layoff letter.

Businesses will sometimes send out a voluntary layoff letter notifying employees of their options so that they do not have to resort to involuntary layoffs.

Voluntary Layoff Letter Template

Voluntary Layoff Letter Template:

Use this general voluntary layoff letter in Microsoft Word format to create a customized letter for your employees.

Download Now

Why Do Companies do Voluntary Separation?

  • It is a show of good faith to employees.
  • A voluntary layoff prevents retaliation by former employees.
  • The workforce can be reduced without forcing people out.
  • Some employees may be ready to retire from their position.
How To Prepare For a Layoff

How To Prepare For a Layoff

A complete step-by-step guide on how to prepare yourself for a layoff before it happens.

FAQs:

Can you collect unemployment for a voluntary layoff?

If you ask for a voluntary layoff, you may not be able to collect unemployment. Some states will allow you to collect unemployment even after a voluntary layoff, but many deny your request since it was your decision to leave. Check with your state to find out.

Can you ask for a voluntary layoff?

Yes. Even if a business does not issue a call for voluntary layoffs, you can request one and start a conversation with management about what they might be willing to do.

What does involuntary layoff mean?

An involuntary layoff is a layoff that is chosen by management. In other words, the employee has no choice.

Should I take voluntary severance?

Every situation is different, so the choice is up to you. If you want to keep working, then you don't have to sign up for a voluntary severance package. However, if you like the severance terms, it may be worth considering.

What is a voluntary severance package?

A voluntary severance package is a package this is offered to anyone in a business who volunteers to be laid off. The severance package may include continued pay for a limited period of time, access to group benefits, and more.

Related Articles:

Employee Termination Letter

Employee termination letter made easy with four samples and a free template download.

WARN Act

Information about the WARN Act, form download, and FAQs.

Employee Write-Up Form

Free employee write-up form downloads in PDF and MS Word formats.

Job Offer Letter

How to create a job offer letter template.

How To Prepare For a Layoff

A complete step-by-step guide on how to prepare yourself for a layoff before it happens.
Post a Job