A reduction in force (RIF) is a permanent action that terminates employees due to either business restructuring, plant or location closing, the elimination of their department or job function, a lack of funding, or available work to support those employees involved in the RIF. JGL’s employment law attorneys are familiar with all the legal issues impacted by a RIF.
Understanding Maryland Layoff Laws
One of the most important Maryland layoff laws requires employers to provide at least 48 hours notice to the Maryland Division of Unemployment Insurance prior to a mass lay-off of 25 employees or more.
A federal protection, known as the Worker Adjustment and Retraining Notification Act (WARN) – protects workers, their families and communities by requiring at least 60 days written notice to employees, whose employers are are subject to the requirements of the WARN ACT (100 employees or more) regarding lay-offs impacting 50 or more employees at one work site.
When is an Employer Permitted to Reduce Their Workforce?
Economic conditions usually precipitate a reduction in force. An industry downturn, diminishing demand, a change in technology that impacts production or distribution, a supply chain or other manufacturing issue are common elements. In addition, a business reorganization can eliminate specific positions, or a decision is made to out-source certain functions to operate more efficiently.
What Does Severance Entail?
Severance pay is the compensation that a company provides to an employee when their employment ends, typically because of a layoff, downsizing or even retirement. The amount of severance pay offered is usually based on the employee’s years of service and sometimes on experience. Severance terms memorialize the number of weeks or hours of severance pay, as well as any continuation of benefits.
Defining At-Will Employment
At-Will employment means that employees work “at the will” of their employers. No cause or reason is required for termination. Unless an employment contract exists, no cause is necessary.
Maryland is an “At-Will” State, which means that if there is not an express contract, agreement or policy to the contrary, and employees may be hired or fired for most any reason, whether fair or not – or for no reason at all.
Why Work with a Lawyer to Execute a Reduction in Force?
There are many local, county, state and federal laws that can impact a Reduction in Force. Employers need to comply with all the various regulations, which can be difficult to do without adequate legal guidance. Utilizing the services of an experienced employment law attorney will minimize any risk.
Consult a Maryland Reduction in Force Lawyer
What matters to you, matters to us. For over five decades, JGL attorneys have fought to improve the future of families, the arc of careers, the success of businesses, and your most basic human rights. The attorneys of JGL take your business, family, and personal issues as personally as you do. If you need to explore a reduction in force lawyer, contact a JGL reduction in force Lawyer.
