What does Outplacement mean? Read on to discover the definition & meaning of the term Outplacement - to help you better understand the language used in insurance policies.
A form of assistance offered by employers to employees who have been laid off from their jobs. Outplacement is rendered by firms that specialize in providing such services, which consist of helping former employees write resumes and cover letters, evaluate their career goals, identify positions and employers that may be seeking their services, and prepare for interviews. In addition to providing job assistance, many legal authorities believe that when an employer offers outplacement services to a laid-off worker, it demonstrates good faith and therefore reduces the likelihood that the terminated employee will bring a wrongful termination lawsuit against his/her former employer. For this reason, most employment practices liability insurance (EPLI) insurers' applications for coverage include a question about whether the applicant employer offers outplacement services to terminated workers, which underwriters view as a positive factor.
We hope the you have a better understanding of the meaning of Outplacement.