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Republished from American Bar Association's (ABA) In-House Counsel's Essential Toolkit.
VIA PERSONAL DELIVERY
[Name and Address]
______________________________ (the “Company”) regrets to inform you that it has chosen to shut down its facility at [address] on or about [date], and to terminate the employment of all persons at that facility. We are providing this plant closing notice to you in accordance with the federal Worker Adjustment and Retraining Notification (WARN) Act, 29 U.S.C. §§ 2101, et seq. The information set out below is based on the best information currently available to the Company, but may change due to subsequent events.
NOTE: If the requirements of the WARN Act are triggered by a mass layoff, rather than a plant closure, the notice should reflect that fact. Such a notice may state:
“______________________________ (the “Company”) regrets to inform you that approximately [number] employees who work at the [address] will be separated from employment. We anticipate that the separations will become effective on [date] (or within fourteen days thereafter) and are expected to be permanent. This notice is being provided to you in accordance with the federal Worker Adjustment and Retraining Notification (WARN) Act, 29 U.S.C. §§ 2101, et seq.”
If you are not closing all operations, but rather restructuring and closing a portion of operations, the notice may explain the circumstances. What follows is a sample explanation:
“Due to significant changes in overall business conditions, __________ is changing its business plans for the _____ ____________ Division (the “Division”). Specifically, the Division will be redirected as a ______________________ organization. The mission of this new organization is to conduct _________________________________________.
Although this change represents a delay in our planned development, the Company is still very enthusiastic about the future of the Division and believes that this change in scope and efforts at this time will enable the Division to better address future opportunities in its market arena. For these reasons, the Division must restructure and transition its operations.”
You may choose to provide conditional notice to employees to satisfy the 60-day notice requirements of the WARN Act, although a decision regarding closure of a facility is not yet final. What follows is a sample conditional notice:
“________________________ (the “Company”) is in the process of determining whether to renew its contract with ___________. While there has not yet been any final decision, we wanted to alert you to the fact that if the contract is not renewed, your current job with the Company will be permanently eliminated. If this happens, you will be separated from employment with the Company on [date], unless you secure another job with the Company before that date.”
If you give less than 60 days' notice of a plant closure, you should explain the circumstances that place the employer within one of the exceptions to WARN's requirement for timely notice. The following is a sample of such an explanation:
“We would have preferred to give at least 60 days' notice of a plant closure and termination of employment. However, that was not possible in these circumstances, because the Company was actively seeking capital or business which, if obtained, would have enabled the Company to avoid the closure. Management believed that, had we given such notice on [date], it may have affected the Company's likelihood of success in its efforts. Unfortunately, the Company's efforts were ultimately unsuccessful. We are now giving you notice of the plans to close the facility permanently, as soon as it became reasonably possible to do so.”
Your present position will be eliminated permanently, and your employment will terminate on _______________ (or up to 14 days later if required by business needs). During this notice period, you will remain on the Company payroll, and will be assigned to assist with transition issues as needed.
You will not have bumping rights, which means you do not have the right to take another employee's job.
NOTE: You may also provide additional information that may be helpful to affected employees, including a description of any services provided to dislocated workers by governmental agencies or the company. The following is a sample of such information:
“We are committed to assisting you through this transition. We appreciate your many contributions to the Company and the efforts of all employees who worked so hard and well to support our business. We encourage you to take advantage of redeployment services during this notice period. We have established a core team to assist you in finding another job. Transition services will include career and job search counseling, and other guidance on strategies for locating a new position. We encourage you to use all available resources to optimize your chances for a quick transition to new employment. Additional materials are being provided to you describing these activities more fully.”
Thank you for your service to the Company. We are disappointed and sorry to inform you of this change in our business fortunes.
If you have any questions, please call [name of Company official] at [telephone number].
Very truly yours,
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