Organizations and companies throughout the world on many occasions encounter difficult conditions which compel them to consider cost-cutting in various forms. The problematic situations could be a result of the economic situation, bad management, or simply the lack of business. However, organizations will have no options but to reduce their spending in an attempt to safeguard their best interests.
When the matter of cost-cutting is discussed the employer generally tends to look at their major expenditure which will be in the form of staff salaries. While the option of reducing salaries is undoubtedly available to employers, it is essential for them to understand that they cannot initiate these actions without issuing a notice because they will be liable for actions under the labor and employment laws governing the country.
Employees would never want to receive a layoff notice or even believe they are in line to receive one unless they witness it on paper in the prescribed format. Communicating a layoff with them employee verbally will not serve any purpose because it would not be recognized as official notice.
It is a requirement for the employer to intimate that employee of the layoff in writing as well as in the prescribed format which would also contain certain elements to give it a feeling of being valid and enforceable according to the laws. The prescribed format must be used regardless of whether the employer is considering a temporary layoff or even termination.
The layoff notice does not contain any news which will be considered pleasant by the employee. However, in difficult times, these professionals need to overlook their personal concerns and begin drafting layoff notices if they are essential for the best interests of their employer. They just need to understand they cannot ignore specific information from the layoff notice which is essential both for the employer as well as the employee. Given below is the information that HR professionals and personal managers cannot afford to ignore.
Points to Consider When Drafting A Layoff Notice
- The letter must be written by using a formal language and observe any guidelines which have been specified by the employer with regard to the formatting, fonts, and style.
- The letter must provide the employee with valid and acceptable reasons why the management was compelled to initiate this action.
- The reasons should be supported by valid criteria which should also be disclosed to the employees.
- The letter must provide information about the benefits and other remuneration which the employee would be entitled to.
- The layoff notice being issued can be temporary where the employee is requested to take time off for a few days or more until the management decides otherwise. However, the employee must be you and information about when he or she would be returning back to work.
- A layoff notice can also be permanent and will be similar to termination because of the difficult situations encountered by the employer.
Layoff notices must be drafted in the manner described above to give an employee the feeling that the employer is only laying them off or terminating their services because of the difficult conditions. A layoff letter drafted properly will help employers and employees maintain good relations and even get together at a later time when things improve for the employers.
Example of Layoff Notice 1
Termination Layoff Notice Letter,
[Name of Company, Address, Telephone Number And Email Address,]
To: [Name of Employee And Contact Details],
Dear: [Name of Employee],
It is with regret that we have to inform you that your position of [name of position] with this company has presently become redundant. We have had to arrive at this situation because of the following decisions:
Our financers have decided that they will no longer be funding the business because they do not find it beneficial for the kind of investments they are making. They have decided to cease funding the business from [date].
This letter is to inform you of your redundancy after considering your notice period of 30 days in line with your contract or employment and the agreement we signed according to the minimum notice act. The redundancy will be effective from [date] and all monies due to you will be paid on [date]. The monies paid will also take into account payment for redundancy, salary as well as outstanding leave.
During the notice period, you would be required to report for work and be paid for the hours you are working. I will be happy to answer any questions or queries you may have.
I would like to take this opportunity to thank you for your services to the company and wish you the best in your future endeavors.
[signature of the employer, personal manager or HR department],
[name of the signatory].
Example of Layoff Notice 2
From: [Name of Employer Along with All Contact Details],
To: [Name of the Employee With Contact Details]
Subject: Layoff Notice
I regret that I have to inform you of a situation where you are being laid off from your position as the [manager] with effect from [date]. The lack of adequate funding and work has necessitated this layoff. The layoff action is indefinite and for all reasons can be considered as permanent.
I would like to assure you that the termination is unrelated to your job performance which I value highly. However, I foresee no changes in the current situation which I anticipate will continue indefinitely. We appreciate your contribution to this organization and regret that the existing fiscal problems of the organization have compelled us to issue this notice.
I would like to wish you the best for the future.
[signature of the individual issuing the notice],
[name and position of the signatory].
As it can be observed from the examples, the employer’s have followed the points mentioned earlier and made every effort to ensure that the employee understands their position and accepts the layoff notice without disputes.