I recently read an article on how firms handle layoffs. The article made the point that there is no uniform procedure amongst employers for laying off employees. Employers are often puzzled when faced with the dilemma of having to engage in a mass layoff, whether it's 5, 50 or 500 employees. So what does an employer do?
In New Jersey, employment lawyers are quite busy these days fielding calls and providing advice on how to handle layoffs. As a preliminary matter, all employers have to be mindful of the WARN Act which imposes penalties and civil liability for failing to give proper notice for a mass layoff. New Jersey has it's own version of the WARN Act which employers must review before laying off employees. But assuming notice is not required under state and federal law, should an employer give notice to the employees. The answer is really up to the employer. This is not an easy question because the employer runs the risk that the service and dedication to the company will not be there if the employee knows that he or she is being terminated. Some employers feel the moral obligation to let the employees know as soon as possible that here jobs at risk. This is where the severance package becomes a useful tool for the employer. An employer can reduce the risk of litigation substantially by offering a severance package and also accomplish the task of compensating the employee for not being able to provide advance notice of the layoff, even if the notice was not legally required, but was more of a moral requirement.
