layoff Failure, refusal or inability of an employer to continue the employment of an employee on account of shortage of raw materials, power, or the breakdown of machinery, etc. Layoff is normally of a temporary nature and is without prejudice to the worker. Use REDUNDANCY for permanent workforce reductions at the enterprise level for economic reasons (eg. bankruptcy, restructuring or technological change) affecting a sizeable number of workers. Do not confuse with DISMISSAL['leɪɒf]n