While the result may look the same (employees being let go), there are some subtle differences. If a union represents any portion of the workforce subject to the RIF, carefully examine the collective bargaining agreement and consider the National Labor Relations Act for limitations on the RIF. Reductions in force are typically permanent because the roles of those let go are usually. Investigate and resolve any apparent disparities in the preliminary list (e.g., Hispanic women or workers over 40 being selected at a higher than expected rate). Determine the nature of the RIF. Click "accept" below to confirm that you have read and understand this notice. (However, be careful of special deals; enhanced severance benefits for a select few employees can generate discrimination lawsuits.). The managers should allow the employee to vent but should not engage in argument or debate and should remain firm (not implying that discharge decisions can be changed). Manager Resource Guide UNC-Chapel Hill Manager Layoff Resource Guide (Rev. Involuntary RIFs give employers more control over which workers leave, but are more often the basis for employees lawsuits. Subject: Reduction In Force Approval Procedures and Managerial Checklist Reference 62 BIAM 11.43 Reduction In Force - requirements for requesting a Reduction In Force has changed for concurrence and approvals, however the process and the required documentation has not changed. An involuntary RIF often can be conceived, planned and implemented in seven to 10 days in smaller organizations, but larger employers will require more time to ensure that the process is thoughtful and legally defensible. Webdownload this RIF checklist to: Keep track of everything you need to determine before conducting a RIF. Thus, employers should carefully assess whether their proposed severance pay schemes are subject to ERISA and how that laws potential advantages compare to the disadvantages associated with statutory compliance. These alternatives to RIFs may not be as cost effective but they likely are less risky. The economy may change and, with luck, an employer may in a few months wish to rehire a worker that was part of a RIF this month. Economic or Reduction-In-Force (RIF) Checklist - Coda Determine whether any employees to be laid off hold visas or have applied for green cards. WebList the employees who would be laid off or terminated based on your layoff/RIF criteria. Attorney Advertising. Identify the company's obligations if those workers are included in the RIF and then make arrangements to satisfy any such obligations. Use only support staff who can keep secrets. After a brief discussion contrasting RIFs with furloughs (another common strategy to control costs in the short term), the checklist consists of four sections: A RIF results in the end of employment for affected employees while furloughs continue the relationship. WebInstructions: The Reduction in Force (RIF) checklist may be used as a guide to insure that supervisors and managers have the materials required for the review and approval of a Although a reduction in force (RIF) often can improve an entity's financial picture, there can be serious legal and financial consequences if it is not properly conceptualized, designed and implemented. Voluntary RIFs (which are sometimes in the form of early retirement incentive plans, or ERIs) often are less disruptive/emotionally painful and result in greater cost-savings (because employees nearing retirement frequently are among the most highly paid workers and more willing to accept an attractive severance opportunity), but often give the employer less ability to retain the best workers. The goal is to make the separation benefits cost-effective, that is, high enough to induce employees to elect departure but low enough to minimize the cost to the company. You have successfully saved this page as a bookmark. The "continuation of group medical coverage" (COBRA) notices should also be provided as required by the federal statute. RIF Checklist: Key Issues in Managing a Reduction-In-Force These alternatives to RIFs may not be as effective in reducing costs, but they may be less risky. Find out what to include when preparing employee separation Equal Employment Opportunity Commission (EEOC) and the jury will not like you. Information contained in this alert is for the general education and knowledge of our readers. The Consider whether a prepared press release (rather than spur-of-the-moment answers to a reporter's questions) will most effectively position the employer in the eyes of the general public. RIFs implicate human resources, benefits, tax/finance and legal issues. Consider Alternatives Objectives. Elimination or Consolidation of jobs? DISCLAIMER: Please note that the situation surrounding COVID-19 is evolving and that the subject matter discussed in these publications may change on a daily basis. The disadvantages of furloughs include ensuring the proper payment of salaried "exempt" employees (who must be paid their normal salaries if they do any work during a furlough week). A separation agreement containing a waiver/release of claims is commonly used. often leads to catastrophe avoidance. Appendix B: Managements Decision to Implement RIF Checklist. There are specific federal statutory requirements for waivers of age discrimination claims in a RIF, including, most notably, that the employee be a) expressly advised in writing to consult a lawyer before signing the agreement; b) given 45 days to consider the agreement before signing it (a period the employee can waive voluntarily); c) given seven days (a period that cannot be waived) after signing the agreement to revoke it (that is, the waiver of age discrimination claims is not effective until the seven-day period passes without revocation); and d) given disclosures consisting of general information about the RIF decision process as well as specific information about the job titles and ages of persons selected and not selected for separation. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem. After reviewing the requirements for the content of such notices, draft and transmit them. The most common advantages of furloughs over RIFs include easier employee departures (because, most often, the federal/state "plant closing"/"mass layoff" notifications need not be given), easier returns to work (because those personnel have remained in the payroll/benefits systems), and the preservation of employment relationships that might be vital to the employer's recovery and return to normalcy. REDUCTION IN FORCE - UNC Human Resources RIF decision-makers may be here today but included in a subsequent RIF tomorrow. Although furloughs often are announced for a specified duration, they can be indefinite, and sometimes "furloughs" become "discharges" if they do not have the desired impact on the employer's economics. and/or "What's the worst that someone could make of this?" Payroll expense reductions and personnel-work alignments also often can be achieved by other alternatives, such as (a) waiting for normal workforce turnover/attrition, (b) reducing hours being worked by hourly personnel or changing their jobs from full-time to part-time, (c) job sharing, (d) pay freezes or pay cuts, (e) implementing short-term (one or two-week) layoffs or plant shutdowns, (f) allowing employees to volunteer for unpaid leaves of absence, and/or (g) transferring existing personnel to different jobs or departments or facilities. Although a reduction in force (RIF) often can improve an entity's financial picture, there can be serious legal and financial consequences if it is not properly conceptualized, designed and implemented. There are other separation benefits that can be provided, including reimbursement of employees' premiums for continuing group health coverage (COBRA coverage), outplacement assistance or jobs training, eligibility for recall to work, more-than-neutral letters of reference, etc. Aspects Explained - Video Game News, Reviews, and Walkthroughs The checklist is designed to provide employers with an overview of the RIF process that allows them to plan for these unpleasant (and potentially risky) events.The checklist is divided into four sections: Section I Planning, Section II Involuntary RIFs, Section III Voluntary RIFs and ERIs, and Section IV Problem Avoidance. These reductions are due to economic pressures, lack of work, organizational changes or other reasons of business necessity which require a reduction in staff. Consider worst case scenarios: what if everyone eligible for a package opts to take one and leave? United States Department of the Interior The checklist is divided into four sections: Section I Planning, Section II Involuntary RIFs, Section III Voluntary RIFs and ERIs, and Section IV Problem Points to consider for these voluntary separations include: Determine desired outcomes. !.E) Checklist
Request for RIF Memorandum
Such ratings and rankings should be as objective as possible (and, of course, employers should compare RIF-related ratings and rankings to prior performance evaluations to ensure that there are not inexplicable discrepancies). Public relations are important. The exit meetings can be held on- or off-site; off-site meetings sometimes are more effective in limiting and controlling the reactions of volatile employees. The advice of a competent RIF lawyer is highly recommended. Pay. If a union represents any portion of the workforce subject to the RIF, carefully examine the collective bargaining agreement and consider the National Labor Relations Act for limitations on the RIF. The checklists included in this template are not limited to other activities that may be relevant for your specific company, industry, or financial situation. Reduction In Force Checklist . Supervisors who are not emotionally equipped to deliver bad news (and face employees' anger and tears) are likely to make mistakes and put the employer at risk. Further, RIF-related lawsuits often are easier for companies to win if there are recent detailed, specific, accurate, fact-based and written job performance evaluations of the released employees (providing tangible evidence they were not performing as well as workers who were retained). Identify the selection criteria. Share. 2022; 2021; 2019; 2018; 2017; 2016; 2015; Compensation; Performance; Basic Appraisal System; Executive Development; Payments (also known as buyouts) which are tools agencies may use to avoid or lessen the impact of reductions in force (RIF). Voluntary RIFs frequently are complicated and sometimes controversial and subject to litigation so (a) ensure that there are a limited number of very well-informed company representatives who can answer questions and that other (less-informed) management personnel are instructed not to speak to employees about the plan or the process, (b) direct eligible employees with questions to only those company representatives who are responsible for implementing the voluntary RIF and (c) carefully craft internal and external announcements, explanatory memoranda, and other communications to ensure clarity, completeness and accuracy of all communications. Too often, however, companies are both unsure and unaware of the different types of criteria that they may use to do so. Section 4312 (d) (1) (B) / 20 CFR 1002.139 (b) / 20 CFR 1002.5 (n) Service Member Checklist; Service Member Obligations Yes No Reference; 1. Consult with counsel about methods for ensuring that certain documents are protected by various legal "privileges.". Republished from James Publishing, Inc., Texas Employment Law.
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