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“Oil & Gas & COVID-19 Hit Hard, Consider All Options Before Layoffs”

June 3, 2020

Article by Annette Idalski and Brian Smith on “Oil & Gas & COVID-19 Hit Hard, Consider All Options Before Layoffs”


In an article published on May 25, 2020 in SHALEMAG.com, Annette Idalski and Brian Smith discuss how oil and gas employers must develop a strategic plan to cut costs while maximizing flexibility with their workforce. Additionally, they discuss the advantages and disadvantages to both furloughs and layoffs.

“Furloughs can best help achieve this goal. Layoffs are another option, but they are not the best choice if the oil and gas company intends to take advantage of certain government-loan programs offering forgiveness, such as the Paycheck Protection Program (PPP),” explain Idalski and Smith.

Idalski and Smith further discuss, “The benefits of a furlough, as opposed to a layoff, for employees include continued employment and maintenance of benefit eligibility subject to the terms of the employer’s benefit plans. Employers benefit because they can maintain their workforce without pay during periods when rigs are laid down and the industry is slow. But, oil and gas employers should be careful not to make mistakes when embarking on a furlough. For example, not all employees should be treated the same.”

To read the article in full, click here.