Last In, First Out (LIFO)

What is Last In, First Out (LIFO) ?

‘Last In, First Out’ or ‘LIFO’ refers to a corporate method of redundancy selection in which the employee with the shortest service period is selected for termination over those who have been in the company for a longer period of time.

Since younger employees tend to have a shorter service period, this method puts them at a disadvantage. Hence, the company might come under the criticism of age discrimination for applying this method. However, this risk of being criticised can be lessened if the company uses other methods for redundancy selection along with Last In, First Out.

The usage of LIFO was drastically reduced in 2006 with the enactment of the Employee Equality (Age) Regulations, which enabled laws against age discrimination in the workplace.

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