Concordia University Reduction of Force Discussion Explain a reduction in force and what considerations must be used to determine which employees.
Post a substantive response to the question (minimum 250 words).
Reply in a scholarly and substantive manner to the following two classmates
In this week’s reading, Muller shared with us the knowledge that a “…mass layoff means a reduction in force…” (Muller, 2013, p. 165) when certain elements are met. These elements pertain to a single location layoff during a 30 day period where: there was not a plant closing, the number of full-time employees affected (500+) by the layoff and or the number of full-time employees affected (50-499) by the layoff as a percentage (33%) of the total workforce (Muller, 2013, p. 265).
The Society for Human Resource Management (SHRM) website posted a resource titled How to Conduct a Layoff or Reduction in Force. This resource shares 7 Steps to follow in a layoff, or reduction in force (RIF), which are as follows: employee selection, avoiding disparate impact, reviewing the Worker Adjustment and Retraining Notification Act (WARN), reviewing the Older Workers Benefit Protection Act (OWBPA), determining severance packages, conducting the layoff sessions, and finally communicating with the remaining workers (SHRM, 2020).
When considering which employees to lay off, the SHRM article does provide criteria to take into consideration like time on the job, performance, job classification, skill set, etc. However, the article also reminds employers to take into consideration protected groups (race, ethnicity, religion, etc.) and how those protected groups could be impacted as a percentage to the total group (SHRM, 2020).
The third step from the SHRM resource cited reviewing the WARN Act. “The Worker Adjustment and Retraining Act (WARN) requires covered employers to provide written notice at least sixty calendar days in advance of covered plant closings and mass layoffs” (Muller, 2013, p. 264).
When considering which employees to notify, Muller gives us this general guideline for employers. “A WARN notice is required when a business with one hundred or more full-time workers…is laying off at least 50 people at a single site of employment” (Muller, 2013, p. 265). Muller goes on to share that the employees affected “…may be hourly and salaried workers, including managerial and supervisory employees and nonstrikers” (Muller, 2013, p. 265). Muller also notes: “Part-time workers do not count when determining whether there has been a plant closing or mass layoff, but they are entitled to receive a WARN notice…” (Muller, 2013, p. 266). Lastly, Muller also give us examples of employees that would not be protected by the WARN Act. Strikers, temporary workers, self-employed contractors, government employees and consultants are a few of those examples (Muller, 2013, p. 266).
Muller, M. (2013). The Managers Guide to HR: Hiring, Firing, Performance Evaluations, Documentation, Benefits, and Everything Else You Need to Know. New York: AMACOM.
SHRM. (2020, March 24). How to Conduct a Layoff or Reduction in Force. Retrieved from https://www.shrm.org/resourcesandtools/tools-and-s…
A reduction in force (RIF) is defined as a separation from employment due to lack of funds, lack of work, redesign or elimination of position(s) or reorganization, with no likelihood or expectation that the employee will be recalled because the position itself is eliminated. A reduction in force can also be when an employee is let go from a company due to budgetary reasons, workforce planning initiatives, position eliminations or other right-sizing events. Reductions in force are typically permanent because the roles of those let go are usually eliminated with the termination of employment.
The Worker Adjustment and Retraining Notification Act (WARN Act) is a federal law that requires most employers with more than 100 employees to provide 60 days advance notice to employees of impending mass layoffs. When considering a reduction in force it is important for organizations to keep in mind the Worker Adjustment and Retraining Notification Act (WARN), which requires covered employers to provide a written notice at least sixty calendar days in advance of covered plant closings and mass layoffs (Muller, 2013). In general, employers are covered by WARN if they have 100 or more employees, not counting employees who have worked less than 6 months in the last 12 months and not counting employees who work an average of less than 20 hours a week. If an employer does not give advanced notice of a plant closure or mass layoff, sometimes it will pay workers a severance of 2 months’ pay. The WARN Act may require not just two months of pay, but also compensation for two months’ worth of benefits.
Muller, M. (2013). The Managers Guide to Hr: Hiring, Firing, Performance Evaluations, Documentation, Benefits, and Everything Else You Need to Know. New York: AMACOM