Lay-offs

memiller

Due to the economy, we are contemplating downsizing and I was wondering how others have handled the announcement of lay-offs. Did you give people any prior notice or did you tell them they were laid-off and that was it?

Margaret Morford

First, the legal issue. Check the federal WARN Act and see if you need to give 60 days notice of a lay-off. Then see if your state has a WARN Act. It may require different things as well.

Second, the employee relations issues. I'd suggest putting together the entire lay-off plan and announcing it at one time, even though everyone may not get laid-off at the same time. This way you can tell all employees that this is the plan and they don't have to wonder going forward if they are next. Don't do it in pieces. Some people will be laid-off immediately and some will stay a few weeks or months to tie up loose ends. Anyone remaining for a period of time must meet productivity levels. Some companies let their sales people go immediately because they don't wish them to talk to customers after the news. Some companies also let the technology people go the same day so that they cannot sabotage the computer system.

I would call local employers and see if you can't get your laid-off workers immediately placed. Invite the local employers on the premises to interview these people. Also hire someone to come in and teach everyone that is being laid off how to do a resume and how to interview. These are low costs ways to make this as painless as possible.

Good luck!

Margaret Morford
theHRedge