The focus of this chapter is primarily on the effects a layoff has on the company and those employees who are “let go.” However, employers should also consider the impact that the reduction in force (RIF) has on employee who remains with the company. Those “let go” had job duties that the remaining employees must assume. This may require the remaining employees to work longer hours and to perform job functions that they may lack the skills to complete. In such situations, employees can become frustrated and customers can become irritated. When circumstances require you to plan for a layoff, you must also plan for how you will move forward with the employees you will retain.
Before embarking on a workforce reduction, employers should plan their actions carefully, consider alternatives to a reduction in force (RIF), analyze any potential discriminatory impact, and articulate a nondiscriminatory and legitimate business rationale for the decision. Employers should lay a fact based foundation for any RIF to protect against the costs associated with discrimination charges and wrongful discharge litigation. In many situations, a permanent layoff will not be an employers...
Please call us at (312) 960-9400 if this is an error or if you have any questions.