If an employer intends to call back its workers, it is a layoff. If the position is eliminated and the employer has no intention of calling back the worker, it is a RIF. The U. Equal Employment Opportunity Commission EEOC suggests listing the employees to be terminated and then determining whether certain groups are affected more than others, like older employees, employees with disabilities or any other group protected by federal employment discrimination laws.
The employer must also state if the layoff is permanent or temporary and outline the process for recalls or applying for future positions. SHRM states there are also mini-WARN Acts for small businesses, and that companies should review state laws carefully as they may have some additional requirements.
Advise employees to contact their local unemployment officer to file a claim. It may be difficult to know what to say to an employee after a layoff. Be sure to let the employee know what type of payroll separation it is: furlough, layoff or RIF.
If you plan on asking the employee back, make sure they know that and try to maintain benefits as an incentive. Request a Demo. Arcoro is here for you during the up times and downtimes. Contact us about our HR and payroll solutions that can help you increase efficiency and do more with less. Strengthen and streamline your HR processes with a modular solution that grows as you grow.
Those laid off are no longer considered employees. Mandatory unpaid leave of absence for a predetermined period of time.
Those furloughed are still employees of the company. Consequences for Employees Can they return to work? No, not in their previous roles. While no return date is announced at the time of layoff, employees may be eligible to return in their previous roles or to a role in another area of the organization.
If the roles are permanently eliminated, the layoff becomes a RIF. The period of time during which the position is temporarily eliminated may vary. The return date is known when the furlough is announced. However, furloughs can become RIFs if it is decided that the positions must be permanently eliminated.
No Will they continue to receive benefits? Possibly, for a certain period of time. No Can they be offered severance? Those who were not let go may still feel a sense of abandonment from the company or may fear that they will lose their job in the next round of cuts. These negative feelings can result in decreased job satisfaction and productivity. Fortunately, there are actions you can take to reduce this negative impact on your remaining workforce. The most important thing during layoffs and RIFs is to communicate effectively with both employees who are leaving and those who are staying.
It is the uncertainty and confusion that causes much of the workplace unrest. The company can also help reassure remaining employees by discussing what is being done to help prevent future layoffs and RIFs.
Communication during the transition period should be more frequent than normal. You probably already know why workforce reductions occur.
Perhaps the organization is going through reorganization, recovering from a financial hurdle, or limiting their products and services. A reduction in force is usually a permanent solution to a perpetual problem. It entails a permanent separation between the employee and the organization. Things like huge budget cuts, rigorous reorganizations, mergers, and acquisitions can be the reason for issuing an RIF.
For example, if a company decides to discontinue the production, selling, and delivery of a particular product or service, then certain positions are bound to become redundant. The same goes for a company that has lost or ended a large contract.
In both instances, a reduction in force is more than appropriate since there is no longer a need for these employees — nor will there be in the near future.
In most cases, RIFs are an obligatory process for businesses to continue operating and have a positive cash flow. The main reason for a layoff is a decrease in sales or a reorganization within the company that is temporary. For instance, there may be an influx of work during the holiday season that may require more employees. But as soon as this busy period passes, there is no need to have the same number of employees.
As a way to save money, companies will implement employee layoffs. In any case, the employee will likely be rehired if the need arises. Hence, we can say that an employee layoff is more of a strategic move, rather than a mandatory business process. Like we briefly mentioned above, many times a layoff becomes permanent, though. This is most likely the reason why RIFs and layoffs are often times lumped together.
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