There are situations and times when temporary lay-offs of staff need to be implemented which could be influenced due to various internal or external business reasons. This policy defines circumstances under which this policy will be implemented in order to set the expectations of the employees in your organization. You can also define how communication has to be done and how the process will work.
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This policy covers rules to be followed with respect to:
There are situations and times when temporary lay offs of staff need to be implemented, and this could be influenced due to various internal or external business reasons.
This policy applies to all our permanent full-time, part-time or contract employees. This policy is owned by < Name of the Person > and reachable @ < Contact Number > and < email address >
We recognize the need for a temporary halt of production or service to our clients due to reasons that are beyond the organisation’s control. This will culminate in lay-off of employees either on a temporary basis or for long periods.
Laying off employees brings new challenges and also legal attention. < Client Name Here > will comply with the law at all times.
“Temporary layoff” refers to reducing the number of employees on a short-term basis. Sometimes, we may ask employees to take planned, unpaid or partially-paid time off from work for a specific period (“furlough”). In the case of furloughs, employees may be eligible to maintain some employee benefits such as health insurance. < Client Name Here > may decide to lay off employees to:
< Company name > will endeavor to provide employees with a written notice at least < one-month > in advance or as much as is specified by law before the effective [temporary layoff/ furlough] date. In the event this timeline is not possible due to any urgent decision taken by the management, impacted employees will be paid in lieu of the notice period as per terms of their respective contracts.
[ Temporary layoffs/ Furloughs ] may last from days to several months. We may set a [Temporary layoff/ furlough ] period (if it’s not set by law), during which we may recall [ laid off/ furloughed ] employees to resume work. During that period, employees may continue to receive pay and benefits dictated by law (e.g. unemployment benefits or health insurance).
This period may be extended due to unforeseen circumstances. < Company name > will be obliged to give notice of extension in this case.
If the Company recalls a [laid-off/ furloughed] employee within that period, there are two possibilities:
When collective [temporary layoffs/ furloughs] are necessary, < Company name > may choose to select employees according to the following criteria:
< Company name > will not discriminate against any employee at any levels. HR is responsible for ensuring that [ temporary layoffs/ furloughs ] are managed efficiently and well documented.
Regions, branches, sub-branches, local offices, departments or by whatever names it is called, may need to close if they aren’t profitable or non-critical to the business. HR, senior management or Heads of Departments may initiate a [ temporary layoff/ furlough] process. HR is responsible for ensuring legality and efficiency.
During the temporary layoff period, employees may apply to another department or branch of our company. < Reporting Officers > are encouraged to refer employees to another assignment or position within the company. In the case of the laid-off employee being rehired, their temporary layoff period will end and they won’t be eligible for severance pay from their first day in a new role.
If employees receive severance pay for a certain period, they must not work for the company during that period. If they are rehired in a different department or branch, before the severance period ends, they have to return the remaining portion of their severance payment. Employees may make arrangements for repaying that balance with HR. In case of furloughs, employees returning to the company will not be eligible for unemployment benefits.
Employees have to route any questions through their respective < Reporting Officer >, who in turn will contact HR. If there are disagreements or complaints, employees are advised to follow the company’s grievance procedure.
This general procedure should be followed:
Any Deviation from this policy has to be approved by HR. Any changes to the policy has to be approved by Legal and Compliance.
Not Applicable