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Layoffs – A Primer, Pt. 2

Notification

You have made the decision to RIF. You have looked at the numbers, the potential for adverse treatment or impact, the cost of payouts, employee benefits, and your goals for the company. If you haven’t – go back to part 1.

Now for the notification phase: The basics include scripts, legal agreements with waivers, timing, unemployment information, required legal notices, checks for payouts of severance or benefits, contacts for benefits’ support, possible outsourcing services, a tracking system for the process, and meeting with remaining employees.

Well written scripts will help you avoid dangerous conversations. Employees don’t care how you feel other than that you are not happy to be doing this. Keep the scripts short. Include dates, reason for RIF, and next steps. Managers must be trained on how to use the script, how to avoid dangerous conversations (such as promising you will rehire them), and the details of the process. Do not assume everyone knows what to do. Some managers may need coaching. You will need a second script on what to tell the employees who remain. They will be waiting for the next shoe to drop.

Legal agreements are very tricky. Be sure you have expert advice and guidance. Include statements for people covered under ADEA and other EEO laws. Include a time to return the signed agreement and a retraction period.

Timing is affected by union contracts, WARN, and the day of the week and month. Begin by meeting legal requirements. Then pick a day and month that will give employees the opportunity to file unemployment, and to adequately review agreements and financial details of their package. Don’t do it on Friday, it makes for a very bad weekend for everyone.

Unemployment will be on everyone’s mind. Be sure to give them all the data they need to file a claim. This includes a letter to take with them, their dates, job title, work status, and compensation paid. Don’t make them ask for it.

Legal notices for benefits must meet timing requirements, cost, and what benefits may be continued or not. Provide contact information for benefits’ support.

If you are giving checks to anyone have them in-hand. Simply hand them over and have the employees sign for them along with the rest of the packet of information being provided to each person. .

If you are offering outsourcing services, tell employees who, what, when, why and how they can access these services.

Start tracking the process immediately. Know who delivered the information, when, how, the documents signed and returned, the details of what was offered. These statistics can help you address legal challenges that may come your way.

Last and definitely not least – meet with remaining employees. Reassure them about your future efforts to avoid additional cuts and to re-grow the company. Do this repeatedly, not just once.

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Patricia Justice, SPHR                                                                         Next column