Cover Your Bases: HR’s Lay-Off Checklist

Over the past several years many of us have been directly affected by downsizing. As an employer, laying-off a dedicated employee is one of the most difficult HR tasks. We often feel as if we don’t have a choice, which makes it all the more difficult.

The only thing worse than laying-off an employee you care about, is finding out that you weren’t in compliance when doing so.

This HR Checklist is brought to you by Employer Solutions Plus.

DO:

Review protected classes. Before determining which employees need to be let go, look at your group as a whole. Laying-off an employee that is part of a protected class can unfortunately be grounds for a lawsuit. Protected classes are typically defined based on age, sex, or race. If you are laying-off multiple employees, do they all have common characteristics (for example, they are all women). If so, be careful; number 2 on this list is going to be really important.

Have a justifiable business reason for laying-off. Your reason needs to be based on a legitimate business reason that stands up in a court of law. It needs to be based on downsizing, eliminating certain functions within your Company, relocating or closing certain office locations… NOT reasons having to do with characteristics, or that can accidentally appear as having to do with characteristics.

Have a witness. It is always recommended that you involve a third person in the room. This provides you with someone who can testify on your behalf in the event that the employee or employees feel you have violated their rights. Your witness should be another HR professional so that they can intervene and correct you in the event that something is accidently misstated.

Work with an attorney, or your PEO. Are you up to speed on all of the countless employment laws? An attorney or Professional Employer Organization will be up to speed. They can help you navigate the complex issues surrounding lay-offs, hiring, and firing.

Be honest, compassionate and QUICK! Losing your job stinks. Although you may simply be seen as a co-worker or manager to the individual, don’t forget to be human, and don’t lengthen an already difficult process. Be sure to provide recommendations to future employers to help the person re-enter the workforce as quickly as possible following termination.

DO NOT:

Give false hope. As we mentioned above, be honest, compassionate and quick!

Play favorites with severance. Pay out severance according to a worker’s title and length of service at your Company. Make sure your severance packages are fair and distribution standards are consistent across the board.

Blame the employee. If the Company is going through some hard times, again, be honest. NEVER lay-off anyone based on their performance, and reinsure them of the real reason for lay-offs, letting them know it has nothing to do with their performance.

For more information on lay-offs, or the advantages of hiring and firing with the help of a Professional Employer Organization, contact Employer Solutions Plus.