HR Home Forums Community Lay-Off Employee Due to Work and Organization Restructure

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  • Conner Lantz
    Keymaster
    Post count: 4836
    Conner Lantz
    Keymaster
    Post count: 4836

    Administrator

    This is more a question about this employees ability to find comparable work than the minimum required termination/lay-off notice/pay. The courts will look at how easy it was for the Manager in question to find comparable work at comparable pay when determining if the compensation was adequate.

    I assume that the Manager in question, given his/her 20 year tenure, is at least in his/her 40s. Does the Manager have up-to-date skills in the new hiring environment? Do they have degrees and experience that make them an attractive hire, or are their skills very niche to your industry, or your company? Usually when an employee has been with a single company for so long, there skills are not as transferable as you would think. Lastly, how competitive is your Industry? Could they go to your competitor and get a job, or do you have a non-compete.

    The long and the short of it is that you are going to have to pay more than the minimum if you want to avoid a future nightmare… it will happen.

    You can look at structuring your compensation as a combination of pay and working notice to lessen the direct financial burden. You can also look at offering retraining or other services to lessen the time to find comparable employment.

    You should also add a rider to your letter that states that when comparable employment is found, working notice/termination payments stop if you structure it with ongoing payments. You don’t want the employee to double dip.

    I understand the complexity of the situation you are in, but without knowing the specifics of their job, we have to offer advice in the worst possible scenario – and with that perspective, the courts will and have always sided with a long tenured employee that is older than the median hiring age when deciding on whether the minimum termination pay was adequate.

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