The Legality of Layoffs versus Firing of Employees

March 29, 2011 - PRLog -- 'Layoff' is an expectation of recall when things pick up at a company.  'Firing' is considered a permanent termination.

Before hiring anyone back, the company needs to consider how the ‘layoff’ was communicated.  If an employee was released with the hope of becoming rehired, action must be taken accordingly to safeguard against litigation.

Be aware of age discrimination. Now more than ever companies must protect against age discrimination accusations.  Lawsuits involving former senior management employees who have been passed over during rehiring for younger, less costly individuals are on the rise.

It is generally recommended that companies should avoid refilling any positions until one year has passed.  If companies do rehire younger workers, employers should be able to clearly articulate why they are bringing back any less senior individuals.

Maintain a defensible position.  Any company looking to re-staff should have a defensible position of selection criteria, bearing in mind all the protected categories: age, race, color, religion, natural origin, sex, etc.  There is potential lawsuit exposure from senior employees who have had their positions filled with younger, less costly workers in their place.

Conduct future layoffs with care.  Just as caution is taken during hiring, employers must also be careful with any additional layoffs on the horizon.  Management must be encouraged to evaluate goals for the layoffs, determine criteria for the cuts and develop a roadmap for proceeding within employment legal constraints.

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