Workforce reductions are a part of the natural economic cycle, but they need to be handled carefully and thoughtfully to avoid legal repercussions, Michael Mitchell says in Take Care When Cutting Staff. Mitchell is a partner at labor law firm Fisher & Phillips.
The criteria you use should be rational, business-based, and if you're in doubt about it, reviewed by counsel.
Mitchell offers the following tips to help distributors fairly and legally reduce staff:
- Consider length of service as a termination selection criterion, or carefully spell out other criteria such as attendance records, skills and abilities or disciplinary records
- Avoid subjective selection criteria that are difficult to prove, such as an employee’s attitude or a supervisor’s gut instinct on who to keep
- Avoid the term “layoff” unless there is a likelihood the employee will be called back to work
Read about one manufacturer’s court battle over alleged age discrimination during a workforce reduction in Take Care When Cutting Staff.
