Unit 5.16 - Organizational Exit

Question 1

What are involuntary terminations?

Answer 1

Involuntary terminations typically occur as a result of employment problems. Could also be layoffs/RIF

Employers must ensure that all involuntary terminations occur for job-related reasons.

Question 2

How should HR prepare for termination interviews/meetings?

Answer 2

Employers should reduce the trauma of terminations.

How to Prepare:
* Plan the termination interview carefully and be prepared for it.
* Be direct and avoid talking about trivial matters.
* Describe the decision and the situation leading to it.
* Answer the employee’s questions and help the person understand the reasons for termination.
* Explain the severance package
* Have the person sign any necessary releases and explain what to do next.

Question 3

Explain layoffs and RIFs

Answer 3

Layoffs occur when employers need to eliminate positions in order to maintain profitability

What to prepare (Instructions for managers):
* Separation letters
* Q&A
* Contact list and phone numbers
* Exit checklist

Question 4

Explain WARN Act

Answer 4

Worker Adjustment and Retraining Notification Act (WARN) requires companies with 100 or more employees to give 60 days advance notice of plant closings or layoffs.

• Governed by the DOL.
• Employer must provide written notice to all employees who may be affected.
• Plant Closing is the shutdown of a plant impacting 50+ employees during any 30-day period.
• Mass Layoff is the end of employment at a site during any 30 day period affecting 500+ employees, or 50-499 employees making up at least 33% of the workforce.
• 60 days notice is required in the event of closing or layoffs, except for
  1. Faltering company
  2. Unforeseeable business circumstances
  3. Natural disaster