Ace the ALCPT 2025 – Unleash Your American English Skills!

The term "lay off" typically refers to the termination of employment due to economic reasons. This occurs when an employer needs to reduce their workforce because of financial difficulties, restructuring, or changing market conditions. Unlike firing, which usually comes as a result of performance issues, a layoff is generally not related to the individual employee's work and is more about the company's broader economic situation.

This term implies that the employee is let go temporarily or permanently but not necessarily due to any fault of their own. It often carries the implication that the job may return when circumstances improve, distinguishing it from permanent terminations.

In contrast, the other options represent different situations in the workplace that do not align with the concept of a layoff. For instance, hiring a new employee pertains to the expansion of the workforce, while promotion indicates advancement rather than reduction in personnel. Temporary leave with pay suggests a short break from work that is compensated, which is also unrelated to the financial constraints that lead to layoffs. Thus, the correct choice is clearly aligned with the economic motivations behind a layoff.