Layout rules are effective when creating a record manually. However, when a field used in a layout rule is updated through other ways such as workflow update, and APIs, the field update takes precedence over both these rules.

These instances are explained with further examples below:

Example:  

You have a layout rule for the Candidates module that says,

<<If Job Location is Overseas, make the Willing to Relocate mandatory.>>

This layout rule will work when you manually create or edit a record in Zoho Recruit and update the Job Location to Overseas. However if the Job Location is updated as Overseas via the following means, Willing to Relocate will NOT be made mandatory and as a consequence, the Willing to Relocate field value will be empty.