How to Lay off an Employee Over the Phone
When the time comes to lay off an employee because business income is down or the company needs to trim costs, it's helpful to understand what to communicate and what to avoid. It's much better to handle this type of conversation in face-to-face scenarios, but that isn't always possible. When you have to lay off an employee over the phone, remember that the employee only has the tone of your voice to gauge the experience. Keep the conversation simple and factual, your tone neutral and remember to use kindness and compassion when talking to the employee.
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Instructions
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Understand the employment laws before contacting the employee. It's important to understand what you can and cannot say, and how you must proceed under the law. If your firm has plans of laying off more than 50 employees at a time, make sure you understand the federal government's WARN act, as this requires that employees receive 60 days advance notice before being laid off.
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Be considerate when talking with the employee. Because the transaction is over the phone, remember the employee cannot read your expressions. Keep your tone neutral and your comments considerate, as losing a job is not a pleasant experience.
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Don't lie to the employee. Be truthful. Firing an employee is different from laying an employee off. Laying off an employee usually happens because business is slow or costs need cutting. It's an uncomfortable enough position; being truthful as to the reasoning behind the layoff may help the employee emotionally deal with it better and avoid potential lawsuits against the company.
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Blame the economy not the employee. Don't blame the layoff on how the employee performed his job. Be honest as to the status of the company's business position and the need to cut back on costs and employees.
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Tell the employee that paperwork and the last check will follow in the mail. Provide him a date he can expect this information. The layoff package must also contain health insurance options available to the employee under the Consolidated Omnibus Budget Reconciliation Act. COBRA outlines the requirements for how an employer must provide this notice. This package must also include information as to how the employee can apply for unemployment.
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Offer severance packages to long-time employees when laying them off. If providing severance packages, do so by rank, title and length of company service. Don't play favorites as this could lead to lawsuits.
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Tips & Warnings
If you would like to hire back the employee if the company's outlook changes, communicate this so that he understands that the layoff is not about his performance.
Use caution when laying off an employee over the phone. It is a good idea to have a witness to the conversation to keep the conversation professional. Ensure you understand the deadlines for providing an employee's final pay in your state, as these laws vary.
References
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