If a Sim is already going through a layoff, unchecking this option will resolve the situation on the next workday.

Source: https://gamerant.com/the-sims-4-growing-together-guide-avoid-layoff/

Players should definitely avoid making the error of unchecking the box either from their own confidence or even something as simple as a misclick, as players would surely regret it, wandering around the bunker with no notion of what they must do.

Source: https://gamerant.com/amnesia-the-bunker-beginner-mistakes/