Downsizing, rightsizing, job elimination, plant closing, layoff, or reductions-in-force...whatever
you want to call it, whatever the reason, one of the most difficult tasks for
the human resources manager and for employers is ending the employment relationship;
reducing the workforce as a result of economic conditions, merger or organizational
restructuring. Employers want to do this in a professional and compassionate
manner, maximizing the outcomes for the terminated employees, employees who
remain and the organization as a whole. They also want to minimize the incidents
of wrongful discharge litigation or negative image within the community.
As an employer faced with a needed reduction, there are many issues you must
be prepared for and knowledgeable on:
The WARN (Worker Adjustment and Retraining Notification) ACT – does
it apply to your situation?
Do you understand the difference between
termination and layoff?
Advantages and disadvantages of offering voluntary
separation?
Under federal law, do you understand the "protected categories" of
employees?
Does a severance package make sense? What precedent does it set?
What do we get in return?
How do you prepare for an effective termination
notification meeting?
What about your preparations for post-termination
situations: COBRA, unemployment benefits, requests for references, possible
rehires.
The Human Resource Department can help you answer these and other questions.
Our project managers are highly qualified to guide you in the preparation of
your reduction-in-force plan through additional considerations such as the
following:
Factors to weigh in deciding to reduce staff.
What about reassignments?
Identification of employees to be terminated.
Reminders about appropriate
language – such as not calling a
termination a "layoff."
Advice on how to prepare for
the conversations with terminated employees.
Development of releases,
agreements, severance letters and other written communications.
