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.