Layoff Procedure

When a particular business is losing money, one of the more common ways of overcoming this is through mass layoffs of employees. Legal and business experts strongly suggest that businesses have a carefully planned layoff procedure. A good layoff procedure provides helps to ensure that a layoff is administered without prejudice, is equitable to employees, and that disruption to remaining employees is minimized. The procedure should detail which employees are to be laid off. Classifications in determining this should include but not be limited to salary, position, tenure, and overall usefulness to the company. Next, the layoff procedure should delineate who tells the employee, and how the employee should be told. Usually, this will be the employee's immediate supervisor. After calling the person in, the employer should tell him right away of the purpose of the meeting. Then, explain to him his rights, of his severance package, and of any help the company might be able to provide in helping him to find a new job. All of this should be thoroughly documented for legal purposes.

Fast Facts

  • Reduction in force, or RIF, is the term commonly used when a school district lays off employees.
  • Many companies offering counseling to employees who have been laid off.

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