Things are choppy right now; many businesses are in the unfortunate position of needing to layoff staff so that the company is recession proofed. Here is what you need to know!
Things are choppy right now; many businesses are in the unfortunate position of needing to layoff staff so that the company is recession proofed. Here is what you need to know! Right now, globally, we are facing the obvious medial challenges of a pandemic. Lucky for us people are adapting quickly. Sadly, for Small Business owners like you and me – the labour laws don’t move quickly.
Leaving your business open to risk if you need to resort to reducing hours, temporary laying off employees, or termination to keep the business alive & recover from the recession.
If you read nothing else - Talk to your HR Team or Lawyer – I assume that 99% of Businesses with under 100 employees do not have an HR person to help you navigate. Contact your Lawyer, not Google, to get advice on legal risks.
Here is what you need to do:
1. Look at your business cashflow and three scenarios & decide how long can you stay in business?
a. If you reduce hours to half
b. If you layoff all employees
c. If you terminate all employees –
2. Now that you know your business reality, call your Lawyer an ask them for advice and templates for the situation that matches your business reality.
a. Change the employment contract to have Employees agree your business has the right layoff employees
i. Do you need to keep paying for employee benefits during a temporary layoff?
b. If you terminate someone due to downsizing, what are your legal obligations for:
i. Termination without notice – what is the required payout?
ii. How many weeks per year are required?
iii. Do you need to keep paying for employee benefits after a termination?
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