Layoff policies should not be adopted lightly and are not for every employer. Prior to adopting a layoff policy, an employer should consult legal counsel and seriously consider whether such a policy is necessary. A layoff policy may be appropriate for an employer that experiences significant seasonal or cyclical changes in the size of its workforce; whereas for employers with a constant workforce size, a layoff policy may not be appropriate and could be problematic.
The specific details of the selection process should not be included in a layoff policy. At most, a layoff policy should advise employees of the general criteria that will be considered, including whether seniority will be a factor and maintain the company’s discretion in the decision-making process.
Inherent in any layoff, reduction in force (RIF) or recall, is the risk of a claim of unlawful discrimination. In determining which employees will be affected by the layoff (or conversely, recalled), an employer should consider only legitimate, business related criteria, such as: