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In order to make business more efficient, companies resort to downsizing. This also known as “trimming the fat”. Reducing the number of employees in a company is the beginning of downsizing. The survival of the business sometimes depends on the company’s ability to downsize. However, this may create panic amongst the employees. Below are a few questions that have been answered regarding downsizing: If the employee denies relocation; can the company refuse to pay severance package? In addition, if the employee is on medical leave, can he/she be terminated?
Fringe benefits need not be given by the company in the absence of a written employment agreement to this effect. However, if one believes that he/she was subjected to discrimination due to which severance pay was not given and that the discrimination was based on a protected class such as age, race, gender, religion, or disability; then one may file a complaint with the Equal Employment Opportunity Commission (EEOC). With regards to the other question, unless the agreement states otherwise; one may not be fired from the company for a period of 12 weeks if he/she is on medical leave as per the Family and Medical Leave Act. A complaint may be filed with the EEOC and the commission on human/civil rights if the employee is fired during the 12 week period. The company may fire the employee upon completion of the 12 week period. Is it required that an employee “help” the ex-employer who has terminated the employee as a part of the company downsizing?
It is not required that the employee help the ex-employer unless he/she wishes to. If the company needs the ex-employee’s assistance, then they should ideally be paying the employee consultation fee or re-hiring him/her. Is it required that the company which is downsizing give a job description to an employee who has been offered a different position so that the job is saved?
It is not necessary for a company to provide a job description. In the event the company has already given a job description; it is not required that the company abides by the job description as it is not an employment agreement and does not create a legally binding structure. Therefore, the company may alter the circumstances of a position at any point during employment. The employee may choose to either take up the position offered or decline it. In the state of Louisiana, can a company first offer an employee a different position due to downsizing and later fire that employee?
As per Louisiana law, an employee may be terminated at any point of time and without any cause if there is no employment agreement to that effect. The company would be well within its rights to fire an employee unless it is done based on one’s race, age, gender, religion or a disability. Can a company in the state of California refuse to give an employee’s benefits that have already been earned due to it closing down?
A company would be violating the California Labor Law if it refuses proving employee benefits that have already been earned. One may report this violation to the Department of Industrial Relations. One may also visit the site http://www.dir.ca.gov/ Downsizing generally leads to panic amongst the employees. You may ask an employment lawyer to obtain help in dealing with corporate downsizing.
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