A voluntary reduction in hours occurs when an employee is allowed to voluntarily restrict their working hours and pay for a specified period of time. This is sometimes used as an alternative to layoff since it allows the company to save money and allows the worker to remain employed. The voluntary reduction in hours may also cause an employee to lose his or her benefits such as health insurance, dental insurance, and stock options. A major reduction in hours is usually not favored by the majority of employees, but if he or she is under the threat of termination, the option becomes more appealing. A voluntary reduction of hours can be informal or formal, depending on the company, and employers should be sure that it is not done as an unfair employment practice.
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