Downsize Law and Legal Definition

Downsize means to reduce the size of an organizational work force. Some employers may offer job placement services, career transition workshops, individual counseling, and similar services to assist workers facing the loss of their jobs. However, there are no laws requiring employers to provide sucgh services.

Downsized workers are often eligible for unemployment compensation under the laws of their state, which vary by state. State laws may also govern payment of unused vaction time and back pay. Wrongful termination claims must prove that the job loss was due to an improper discriminatory motive, rather than economic motivations.