Template - Layoff and Recall Policy
Layoff and Recall Policy
If [Company Name] determines that it must reduce the workforce because of adverse economic or other conditions, then layoffs and recall from layoffs will generally be conducted in a manner that is consistent with the procedures described below.
- If a layoff is expected, [Company Name] will attempt to communicate information about an impending layoff as soon as possible considering the company’s interests and compliance with state and federal notice requirements.
- Employees will generally be selected for layoff based on the following criteria, although not in this particular order:
- Promotion potential and transfer-ability of skills to other positions within the unit.
- Demonstrated current and past performance.
- The needs of the company and specific projects.
- Length of service with the company.
- An employee’s length of service is measured from the original date of employment with [Company Name], if there has not been a break in service greater than 30 days. Employees with breaks in service greater than 30 days, but less than one year, are credited only for their time actually worked; that is, the break in service time does not get credited in an employee’s length of service unless required by law. Employees with a break in service greater than one year will receive credit for service from their most recent date of hire with the company.
- Employees selected for layoff will be given as much notice as is required by law or as much as is reasonable under the circumstances.
- If the layoff is expected to exceed 30 days, unused vacation days accrued will be paid at the time of layoff. Employees who are laid off will not continue to accrue vacation or sick leave during the layoff.
- Employees who are laid off will be maintained on a recall list for six months or until management determines the layoff is permanent, whichever occurs first. Removal from the recall list terminates all job rights the employee may have. While on the recall list, employees should inform the human resource (HR) department if they become unavailable for recall. Employees who do not keep a current home address and phone number on record with the HR department will lose their recall rights.
- Employees will be recalled according to the needs of [Company Name], the employee’s classification and ability to perform the job. Notice of recall will be sent by registered mail, return receipt requested, to the employee’s home address on record. Unless an employee responds to the recall notice within seven days following receipt of the notice or its attempted delivery, the employee’s name will be removed from the recall list and the employee will no longer have any job rights with [Company Name].
- Credit for seniority will continue to accumulate during any layoff of 30 days or less. Employees laid off for more than 30 days and subsequently recalled within six months from the date of layoff will be credited with the service accumulated at the time of layoff.
Disclaimer: This information is provided as a self-help tool and does not constitute legal or financial advice. Laws, regulations and lending products are changing daily and decisions as to whether or how to use this information and/or what actions to take in response to the COVID19 Pandemic are solely those of the employer. The providers of this information disclaim any and all responsibility and liability for its accuracy, completeness or fitness for your particular business purposes.