Voluntary Layoffs
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12 Posts
Our company is currently experiencing slow business.
We have had several employees take advantage of this
who have asked for 1 - 2 days off, without pay, from
work. We have had other employees ask for a week or two.
My boss and I have discussed the possibility of
offering a "temporary, voluntary layoff" to those employees
who would like to take some time off with no pay, and the
opportunity to return to work when business has picked up.
We have never used this practice before. What are the legal
remifications of a "voluntary layoff" if employees sign up
for such a benefit? How can we make this a "win-win" situation
for both employee and company?
We have had several employees take advantage of this
who have asked for 1 - 2 days off, without pay, from
work. We have had other employees ask for a week or two.
My boss and I have discussed the possibility of
offering a "temporary, voluntary layoff" to those employees
who would like to take some time off with no pay, and the
opportunity to return to work when business has picked up.
We have never used this practice before. What are the legal
remifications of a "voluntary layoff" if employees sign up
for such a benefit? How can we make this a "win-win" situation
for both employee and company?
Comments
To make it a real win situation for the employee, find a way to keep their health benefits going or at least pay they’re COBRA.
In our Hourly group, we are required to ask all employees if they want Voluntary layoff before we can go to Involuntary layoff status.
In both cases, we allow employees to continue their insurance at their regular rate into the 2nd month off. We find Voluntary layoffs are better for plant morale than Involuntary. In the Hourly group, VLO prevents having to transfer employees back & forth between jobs too frequently, where we lose time retraining employees in jobs they would only hold for a few weeks.
In both groups, the big concern is the insurance coverge & job search requirements. We always advise Workforce Development that the layoff is short-term - they waive the job search requirement then.
One thing that I would recommend is to be very careful how you choose who is to get laid off, if you do not ask for or get enough volunteers. Be sure that whatever system you use, seniority, recent discpline action or your system that you use it for all employees across the board.