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Voluntary Layoff Letter for the United States

Voluntary Layoff Letter Template for United States

A Voluntary Layoff Letter is a formal document used in the United States to facilitate a mutually agreed separation between an employer and employee during workforce reduction initiatives. This document outlines the terms of separation, including severance benefits, continuation of health benefits, and other relevant terms while ensuring compliance with federal and state labor laws, including WARN Act requirements where applicable.

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Voluntary Layoff Letter

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What is a Voluntary Layoff Letter?

The Voluntary Layoff Letter serves as a critical document when organizations need to reduce their workforce while maintaining positive relationships with departing employees. This document type is commonly used during corporate restructuring, economic downturns, or strategic realignment of business operations. The letter must comply with U.S. federal regulations including the WARN Act, ADEA, and state-specific requirements. It typically includes severance terms, benefits information, release of claims, and specific deadlines for acceptance. The voluntary nature of the separation must be clearly articulated to distinguish it from involuntary termination.

What sections should be included in a Voluntary Layoff Letter?

1. Employee Information: Full name, position, employee ID, and department of the employee

2. Effective Date: Clear statement of the last day of employment

3. Voluntary Nature Statement: Clear statement that the layoff is voluntary and initiated by the company

4. Severance Details: Specific terms of severance payment, including amount and payment schedule

5. Benefits Information: Details about continuation or termination of benefits, including COBRA rights

What sections are optional to include in a Voluntary Layoff Letter?

1. Non-Compete Reminder: Reference to existing non-compete obligations, used when employee has signed previous agreements

2. Return of Property: List of company property to be returned and process for return

3. Outplacement Services: Details of any career transition support offered by the company

4. Reference Policy: Company's policy on providing references for future employment

What schedules should be included in a Voluntary Layoff Letter?

1. Release Agreement: Legal document releasing company from claims

2. Benefits Summary: Detailed explanation of post-employment benefits

3. COBRA Notice: Required legal notice about healthcare continuation rights

4. Property Return Checklist: Itemized list of company property to be returned

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Document Type

Termination Letter

Cost

Free to use
Clauses




















Industries

WARN Act: Federal Worker Adjustment and Retraining Notification Act requiring employers to provide advance notice of qualified plant closings and mass layoffs

ADEA: Age Discrimination in Employment Act protecting workers 40 and older from employment discrimination

OWBPA: Older Workers Benefit Protection Act amendment to ADEA, requiring specific provisions for valid release of age discrimination claims

FLSA: Fair Labor Standards Act governing minimum wage, overtime pay, and final paycheck requirements

Title VII: Title VII of the Civil Rights Act prohibiting employment discrimination based on race, color, religion, sex, and national origin

ADA: Americans with Disabilities Act protecting qualified individuals with disabilities from discrimination

State WARN Acts: State-specific versions of WARN Act that may have different thresholds and requirements than federal law

State Payment Laws: State-specific requirements regarding timing and method of final wage payments

State UI Laws: State-specific unemployment insurance laws affecting benefit eligibility and claims process

COBRA: Consolidated Omnibus Budget Reconciliation Act requiring continuation of health coverage options

Release of Claims: Legal document where employee waives right to sue employer for certain claims in exchange for benefits

Notice Periods: Required timeframes for providing notice of employment termination under various laws

Severance Terms: Specific conditions and amounts of any severance payment offered as part of voluntary layoff

Company Property Return: Requirements and procedures for returning company equipment, documents, and other property

Confidentiality Obligations: Ongoing requirements to maintain confidentiality of company information after separation

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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