PERCEIVED FAIRNESS OF LAYOFFS AMONG INDIVIDUALS WHO HAVE BEEN LAID OFF: A LONGITUDINAL STUDY

Abstract

This longitudinal study examined 3 layoff‐specific (explanation, correctability, and severance benefits) and 2 person‐centered (negative affectivity and prior organizational commitment) variables as predictors of layoff victims' judgments of layoff fairness, willingness to endorse the terminating organization, desire to take the previous employer to court, and willingness to commit to future employers. In addition, this study assessed how reemployment moderated these relationships. The results highlighted the importance of receiving an explanation from organizations about how and why layoffs were conducted. Explanation was associated with higher perceived fairness of the layoff, higher willingness to endorse the terminating organization, and less desire to sue that organization, even after reemployment. Four predictor‐outcome relationships were moderated by reemployment status.