Last in First Out (LIFO)
Last in First Out (LIFO) is a technique for employees’ maintenance wherein the latest workers to join an association are quick to be laid off during a decrease in labour force. The LIFO method assumes that newer employees have less experience and, as a result, contribute less value to the company than those who have worked there for longer. Subsequently, LIFO might be viewed as a method for holding the most experienced and important workers in case of a cutback. This strategy can be disputable as it can prompt more youthful, more different laborers being excessively affected.
In the event of a workforce reduction, employers may choose to use LIFO, but it is not required by law. It is essential to keep in mind that employing LIFO may have legal ramifications, and employers ought to seek advice from an attorney prior to doing so. Employers must also ensure that employees selected for layoffs based on LIFO are not selected in a discriminatory manner or in violation of anti-discrimination laws.
During a workforce reduction, employers have a variety of options for retaining employees, but LIFO is not the only one. First in, first out (FIFO) and performance-based retention strategies are alternatives to LIFO. At last, the technique picked will rely upon the association’s requirements and objectives, as well as lawful and moral contemplations.