Voluntary Lay-Off Policy

Blanche

Has anyone implemented a voluntary lay-off policy? I would like to present this as an option as we further strategize a survival plan to get through this ongoing "recession" in high-tech. I've got a pretty good framework, but I am interested in hearing from those who have experience with this approach. What caveats, best practices, or anecdotes should I keep in mind?

Theresa Gegen TX

From a legal standpoint, one critical issue that is coming more and more to the forefront is complying with the Older Workers' Benefit Protection Act if you are tyring to get waivers of claims. If one of your goals is to have employees who accept the vol. lay off waive all claims, then very strict requirements (including waiting times and disclosure of information about the group that is eligible for the policy) come into effect.

If you are going to have such a policy, and it will be offered to more than one person, and you want a waiver, you need to make sure it is reviewed by your employment law attorney for compliance. The EEOC has recently published its guidelines about the OWBPA and it is not easy to comply with.

Good Luck!!

Theresa Gegen
Editor - Texas Employment Law Letter
Andrews & Kurth, LLP
Dallas, TExas

Down_the_Middle

Without going into more detail than space available, I've used the voluntary piece as part of my overall RIF policy. Since the end result of lay-off is to involve and disrupt the fewest people, why not offer voluntary lay-offs to people who are ready to leave and might not come forward. You'll not likely get huge numbers of volunteers, but at a time when you struggle with needing to reduce the workforce and trying to keep the future stars, every volunteer helps. Many org's use the LIFO method and volunteers sometimes help retain the recent star that was hired.

Margaret Morford

Two things I might suggest is that you have the employee submit a letter or sign a form that says that he/she is requesting a voluntary lay-off. This could be a great help if the employee later argues discrimination. Also, your policy should say that the company will entertain requests for voluntary lay-offs and they will be granted on a case-by-case basis. You would not want to offer a lay-off to someone that is critcal to your operation, so don't make a blanket offer.

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
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