Eliminating a Department
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We are a Specialty Clinic that is considering dropping one of our specialty areas, and are needing some guidance on how to respectfully handle our employees. We need advice on how to handle acquiring some into our other specialty areas, determing who that will be, and how to keep our good employees on during the transition phase without them leaving right away not knowing what their fate holds. Should we offier a severance if they stay through the transition period? We have never had to lay off anyone, so we are new to this. Any advice is appreciated.
Comments
Before you get too deep into the other details, assess whether or not the WARN act applies to you.
WARN does not apply to us. It affects only about 7 employees.
We are a Specialty Clinic that is considering dropping one of our specialty areas, and are needing some guidance on how to respectfully handle our employees. We need advice on how to handle acquiring some into our other specialty areas, determing who that will be, and how to keep our good employees on during the transition phase without them leaving right away not knowing what their fate holds. Should we offier a severance if they stay through the transition period? We have never had to lay off anyone, so we are new to this. Any advice is appreciated.[/quote]
There are a lot of ways to go about this. One way is to figure it all out, and then put it into play so that everyone knows their fate right from the beginning. In that scenario, if you require people to stay on for a bit, letting them know what their severance will be (as part of a non-disclosure and release agreement), everyone will be just fine. It's not uncommon to start loosening up attendance requirements or even let them continue to come to the office after separation to use the phone, fax, etc. for job search purposes.Severence agreements sometimes pay out like payroll. That makes it easier to suspend payments if the former employee violates a term of the severance or other agreement in place (e.g., non-compete, non-disclosure).
That method is only possible if you have a good idea of each targetted employee's skill set. If you don't know their skills, you can't say who is staying and who is going. If you start testing or inquiring about skills, you can get the rumor mill started. If you think you can avoid the rumor mill, stay quiet as long as you think prudent. If you think it will start up; then it's time for some straight talk while you figure it out. Let them know there will be a severeance offer if they stay through transition. If there is no transition period, you should still do a severance if your company is financially able to do so unless counsel tells you they don't work well in your state or circuit. There have been cases recently in which employers were sued successfully by former employees who signed release agreements.