Final answer:
The statement is false; friendly departures do not include termination for cause, downsizing, or lay-offs. These terms describe involuntary separations initiated by the employer, contrary to the mutual agreement seen in amicable departures.
Step-by-step explanation:
Friendly departures do not include termination for cause, permanent downsizing, temporary lay-off, or quitting. Therefore, the statement is false. Friendly departures typically refer to situations in which the separation between the employer and employee is mutual and amicable, such as retirement or voluntary resignation. In contrast, termination for cause is initiated by the employer due to the employee's behavior or performance, and downsizing or lay-offs are often a result of economic constraints and not the employee's choice.
The concept of adverse selection of wage cuts supports this distinction by revealing that employers prefer to lay off certain workers rather than reduce wages across the board, anticipating that the best employees would leave if universal pay cuts were implemented. This tactic allows companies to retain more skilled workers during economic downturns.
Additionally, labor laws, such as those in France which complicate the process of firing or laying off workers, can discourage companies from hiring in the first place, as well as from engaging in downsizing unless it's critically necessary.