Downsizing your Labor Force

It is never easy to terminate employees, but when downsizing you want to avoid potential legal pitfalls.  Just because you need to downsize doesn’t mean that you are exempt from discrimination or wrongful termination claims.  If the people you are laying off are older or minorities or are members of a class that is usually discriminated against, you are setting yourself up for potential legal problems.

If you end up in court, you will be required to answer a number of questions about the layoff:

• who decided a layoff was necessary
• what were the circumstances giving rise to that decision
• did the layoff focus on personnel or on business need
• how were the individuals selected for layoff – what criteria was used
• who decided which employees to layoff
• did evaluations play a part in the decision
• what benefits were offered
• what records were kept

To avoid problems, you need to create a Work Force Reduction Plan.  This is similar to a business plan when you are starting your company.  Envision the new company and what duties will be required to meet the needs of the company.  Properly preparing this document can avoid problems when downsizing.

Call our office today so that we can assist you with your Work Force Reduction Plan. (650) 422-3313.