Make Layer Panel Shift up

When I reduce the window size, the bottom right corner transform tools disappear, perhaps the layer palette can reduce in size to accommodate it, up to a certain point.

I am reducing the window size to accommodate the Preview window as currently the normal preview panel does not retain the same size across tabs i.e. Preview Panel State not remembered for all tabs

You can resize the layer panel yourself. The bottom border if the panel is draggable.