Legal issues in reduction of workforce

What you need to know Workforce diversity extends beyond affirmative action and protected classifications like gender, race, age, religion, national origin, and disability. It is not based solely on changing the representation of various groups in the workplace. Rather, workforce diversity focuses on recognizing uniqueness in every individual, valuing each person's contributions, and creating an inclusive environment where awareness of and respect for individual differences are promoted and encouraged.

Legal issues in reduction of workforce

Terminology[ edit ] Euphemisms are often used to "soften the blow" in the process of firing and being fired. The term became a euphemism for permanent termination of employment and now usually means that, requiring the addition of "temporary" to refer to the original meaning.

Many other euphemisms have been coined for " permanent layoff", including "downsizing", "excess reduction", "rightsizing", "leveraging synergies", " delayering ", "smartsizing", "redeployment", "workforce reduction", "workforce optimization", "simplification", "force shaping", "recussion", and "reduction in force" also called "RIF", especially in the government employment sector.

While "redundancy" is a specific legal term in UK labour law. When an employer is faced with work of a particular type ceasing or diminishing at a particular location, [14] it may be perceived[ by whom?

Firings imply misconduct or failure while layoffs imply economic forces beyond the employer's and employees' control, especially in the face of a recession such as the one that began in the late s. Common abbreviations for reduction in force[ edit ] RIF - A generic reduction in force, of undetermined method.

Legal issues in reduction of workforce

Often pronounced like the word riff rather than spelled out. Sometimes used as a verb, as in "the employees were pretty heavily riffed". IRIF - Involuntary reduction in force - The employee s did not voluntarily choose to leave the company.

This usually implies that the method of reduction involved either layoffs, firings, or both, but would not usually imply resignations or retirements.

Mba Week 4 Legal Issues In Reduction Of Workforce | Case Study Solution | Case Study Analysis

VRIF - Voluntary reduction in force - The employee s did play a role in choosing to leave the company, most likely through resignation or retirement. In some instances, a company may exert pressure on an employee Legal issues in reduction of workforce make this choice, perhaps by implying that a layoff or termination would otherwise be imminent, or by offering an attractive severance or early retirement package.

Conversely, the company is not obliged to accept an employees decision and may not accept every employee who volunteers for a VRIF. WFR - Work force reduction.

Layoffs in the public sector[ edit ] Following the recession ofthe public sector has seen significantly smaller job growth in employment versus the private sector and layoffs have been used to ensure sustainability.

Planning a workforce reduction: a brief checklist - Lexology

Layoffs in the public sector have put limitations on the growth rate of the private sector, inevitably burdening the entire flow of markets. Unemployment compensation[ edit ] The risk of being laid off varies depending on the workplace and country a person is working in.

Unemployment compensation in any country or workplace typically has two main factors. The first factor of unemployment compensation depends on the distribution of unemployment benefits in a workplace outlined in an employee handbook. The second factor is the risk of inequality being conditioned upon the political regime type in the country an employee is working in.

Packages may also vary if the employee is laid off, or voluntarily quits in the face of a layoff VRIF. The method of separation may have an effect on a former employee's ability to collect whatever form of unemployment compensation might be available in their jurisdiction. Depending on local or state laws, workers who leave voluntarily are generally ineligible to collect unemployment benefits, as are those who are fired for gross misconduct.

Also, lay-offs due to a firm's moving production overseas may entitle one to increased re-training benefits. To qualify for SUB-Pay benefits, the participant must be eligible for state unemployment insurance benefits and the separation benefit must be paid on a periodic basis.

The benefits, which organizations claim to be seeking from downsizing, center on savings in labor costs, speedier decision making, better communication, reduced product development time, enhanced involvement of employees and greater responsiveness to customers De Meuse et al.

However, the employee terminated is not alone in this. Layoffs affect the workplace environment and the economy as well as the employee. Layoffs have a widespread effect and the three main components of layoff effects are in the workplace, to the employee, and effects to the economy.

Effects of layoffs in the workplace: Layoffs have remained the greatest way for a company to cut costs. Although from the employer's perspective a layoff is beneficial for the businesslayoffs create an uncertainty in the workplace environment and lowers other employees' job security as well as creates an apprehension and fear of termination for the remaining employees, and subsequently lowers overall motivation in the workplace environment.

According to Healing the Wounds: Overcoming the trauma of Layoffs and Revitalizing Downsized Organizations, [21] in the post-layoff environment, there is a need for empathy, tangibility, self-knowledge, and relentlessly seeking customers among the surviving employees.

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The remaining employees may have feelings of survivors guilt. In order to diminish negative effects of layoffs, Wayne Cascio suggests alternative approaches to layoff and downsizing as "Responsible restructuring" approach.

No matter the position in an organization, employees will look for job security. Effects of layoffs to the employee: Employees or former employees in this case can be affected in a couple of different ways. When an employee is laid off, his or her general trust in long-term work may decrease, reducing expectations upon rehire.

Legal issues in reduction of workforce

After an employee withstands a layoff, the effects can trickle into future employment and attitudes.A layoff is the temporary suspension or permanent termination of employment of an employee or, more commonly, a group of employees (collective layoff) for business reasons, such as personnel management or downsizing an organization.

components of workforce planning to form a strategic plan to cope with the workforce • Current budget and position reduction information. • Identify training needs, classification and compensation issues, organizational or position changes. There is, of course, a legitimate argument for some limitation upon immigration.

We no longer need settlers for virgin lands, and our economy is expanding more slowly than in the nineteenth and early twentieth century. Texas has implemented its version of the federal Workforce Investment Act, (now the Workforce Innovation and Opportunity Act), to assist employers and employees with training issues.

The state law is very similar to the federal law. Previous article in issue: The Supreme Court's Balancing Act–Prioritizing ADA rights against seniority and worker safety. Previous article in issue: The Supreme Court's Balancing Act–Prioritizing ADA rights against seniority and worker safety.

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