Layoffs - Help!

Confused

We're about to have to make layoffs because the company is in a pinch (due to the economy, September 11 effects, and other unrelated financial issues). The last thing employees heard from us is that while things are very tight, we're doing okay. We've already targeted which jobs will be eliminated but haven't made the layoffs yet and have not communicated the company's financial concerns to employees. How would you proceed from here?

Margaret Morford

Make the announcements all at once. Do not do two people this week and a few next week. Even if the termintion dates are different, notify everyone effected as to when their last day will be. Then announce to the work force that you have had to do lay-offs and that everyone effected has been notified. This keeps the employees from constantly wondering if they are next.

Offer severences to those laid off in exchange for a release. Get a lawyer who specializes in employment law to draft the release so that it is binding.

If you cannot offer outplacement, have HR do an outplacement class for all those effected. You can help them with their resumes and teach them how to interview effectively.

Contact other employers in the area and invite them on site to interview your laid off employees in hopes of placing them in new jobs immediately.

All of these things demonstrate to your employees that you care about them and will help soften the blow of being laid off.

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
[url]http://www.thehredge.net[/url]

Dianna

A tidbit of information from The Employer's Legal Handbook by Attorney Fred Steingold:

Keep the WARN act in mind as well if you have 100 or more fulltime employees or you have 100 or more employees whose total work amounts to 4,000 or more hours a week, not counting overtime hours.

To comply with WARN, you must notify employees if you plan to 1) close an employment site, causing 50 or more fulltime employees at the site to lose their jobs, or 2) lay off at least one-third - but not less than 50 - of the fulltime employees at a site.

In those situations, you must notify each employee - or the employee's union representative - in writing 60 days before you close the site or lay off the employees. You must also send written notice to the state's dislocated worker unit and the chief elected officer of the municipality where the closing or layoff will take place. But you needn't give a full 60 days' notice if a closing or layoff is caused by unforeseen business circumstances or a natural disaster.

If you fail to give the required notice, your employees can sue you for back pay and benefits. you may also have to pay penalties if you don't give timely notice to the local government.

If there's a question about whether you fall under this act, you might want to consult an employment attorney.

Gar

Layoffs are always difficult. The advice given thus far seems sound. The only thing I would add is that as you go through the layoff process, frank and timely communications with your employees will be of the utmost importance. Squash rumors as soon as they rear their heads and be honest, even if the news isn't good. It would help if the top leadership of your firm got involved in your communications effort. It would give the appearance that we're all in this together. Good luck.

System

Communication is the key. You don't want a layoff to come as a total surprise to employees. Layoffs cause employees a lot of negative emotions -- you don't want to pile on shock and feelings that management misled them (regardless of whether you think these feelings are justified).

James Sokolowski
Senior Editor
M. Lee Smith Publishers