Understanding the Difference Between Attrition and Layoff: Can You Explain Why They Happen?

tejaswarupa
Hi All,

This is Teja. Can anyone tell me the variation between attrition and layoff and the reasons for that?
Madhu.T.K
Attrition stands for the rate of labor turnover or the ratio of employees leaving the establishment as a percentage of employees on the roll on a particular date. It is a concept to show how frequently employees leave the organization, and a high rate of attrition is certainly a bad signal.

Layoff is a legal term used for temporarily closing down an establishment due to the absence of materials, power, etc. Layoff is an initiative of the employer who finds it difficult to run a factory or a division of the factory without power or materials.

Regards,
Madhu.T.K
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