What legal and ethical responsibilities does a firm have to its employees when it decides to cease operations?
unNamed 1 asked:
Due to the increasingly high cost of doing business I have decided to close down. I was just wondering what exactly are the legal and ethical responsibilities that I have to my employees who have been with me for at least 5 years. Experience-based answers (from employees who have been laid off and employers who had to lay off workers) are more than welcomed.
Due to the increasingly high cost of doing business I have decided to close down. I was just wondering what exactly are the legal and ethical responsibilities that I have to my employees who have been with me for at least 5 years. Experience-based answers (from employees who have been laid off and employers who had to lay off workers) are more than welcomed.
November 18th, 2007 at 4:12 am
Why don’t you contact the Depart of Labor?
November 19th, 2007 at 7:22 am
I would let all employees know well in advance that you plan to close down. That will give them time to look for new employment or receive job training. If there is any money left in the coffers, you could consider paying for their job training if there is a cost.
You can ask if any one wants a letter of reference that you would be willing to do that for them. Ask them how many copies they think they will need. Reference letters can be an important part of future employment.
Severance pay would be nice if this is possible. Other wise perhaps a check to thank them for their service to you. Something is always better than nothing.
Even those who worked less than five years deserve the same. Reference letters for sure. Any monies is entirely up to you.
Don’t forget about unemployment compensation.