Supervisors and human resource professionals face decisions on a daily basis regarding terminations, discipline, accommodations, leave, and other employment-related matters. However, downsizing is one of the most crucial decisions an employer may confront because it affects a large group of people, affects the employees in a profound way, and can be important to the employer’s competitive posture or to its economic survival. Virtually all decisions made as part of a reduction in force may be subject to review by the courts.
This section discusses procedures that a company should consider in planning and implementing a reduction in force. (A checklist of these procedures is included below.) If the reduction in force involves only a small number of employees, it becomes even more important to consider and implement the procedures discussed below to help protect the employer from claims of discrimination, retaliation, wrongful termination, or other legal claims relating to layoffs.
If an employer is a signatory to a union collective bargaining agreement, the bargaining agreement may control the layoff process. Further, layoffs may have to be negotiated with the union before they are implemented.