According to the Labor Standards of Law, section 2, article 11, ”A deficit or a downsizing” is the reason for employers to terminate the labor contracts. These dislocated workers have suffered from financial hardship and sociological insecurity. In order to have the government or authorities to be involved with this issue, a labor protection law was created to be more fair in a lay off of workers, to protect workers and maintain the peace and economic stability in the society. With ”a deficit or a downsizing”, it is uncertainty of law, especially because a deficit is the main concern of managerial prerogatives. With a deficit, businesses typically use self-preservation; the least of which results in the reorganization of the employees, and the most severe results would be the plant closure where workers would lose their jobs. It can be concluded that a deficit is definitely worth researching further.