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Republished from James Publishing, Inc., Texas Employment Law.
1. Analyze pre-layoff statistics in consultation with counsel.
2. Freeze hiring, to the extent possible.
3. Implement other cost-saving plans, (e.g., wage freeze/reduction, elimination of recruitment, and fringe benefits).
4. Consider alternative (voluntary) workforce reduction plans.
5. Design new workforce plan and compare it to pre-restructuring workforce.
6. Determine appropriate organizational structure to be achieved post-RIF.
7. Create organizational charts based on job categories/positions, but do not consider individual employees at this stage.
8. Send documented communication to affected business units describing need for reduction.
9. Review obligations (e.g., written employment contracts, labor agreements, corporate policies and procedures, and affirmative action plans).
10. Identify jobs, functions, sections, or departments that will be eliminated.
11. Determine selection criteria, if individual layoffs are necessary. To the extent possible, use objective criteria (e.g., seniority and pre-layoff written performance appraisals). Do not be afraid to select the best person for a particular job, so long as the company can articulate a non-discriminatory business reason for the selection.
12. Reduce RIF criteria to writing.
13. Implement RIF in a manner consistent with employer's articulated goals and rationale:
A. Decide which job functions must be retained, which can be consolidated, and which can be eliminated.
B. Identify the employees who will be affected by the implementation of the RIF.
C. Evaluate each employee in affected disciplines against the agreed-upon RIF criteria.
D. Prepare written report to RIF committee concerning employer's selections. Identify selection criteria used, employees chosen for termination, and comparable employees not chosen. Explain why those employees were retained.
14. Have management and RIF committee review report and all initial termination decisions. Decisions should conform to procedures set by RIF committee and should not have a disparate impact on a protected group, as determined by statistical analyses.
15. Have RIF committee make final selection decisions.
16. Communicate selection decision to affected employees at individual meetings.
17. Provide outplacement services to employees.
18. Maintain hiring freeze, to the extent possible.
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