How to Let Your Employees Know They Will Be Laid Off
Notifying an employee that she is going to be laid off can be an anxiety-inducing task. Being positive and helpful will make it easier on you and on the employee. Remember that people react differently to bad news and you may be faced with an emotional display involving crying or yelling. Try to remain calm, no matter how the employee reacts to the news. Give an employee as much notice as possible so that he has time to look for a new job.
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Instructions
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Decide on a benefits and transition package for your employee before you let him know he's being laid off. This package should include details about his financial compensation, health insurance and any counseling or job training available.
Create a memo explaining the reasons for the layoff. Write down any details that you intend to share with your employee when you lay him off, such as corporate downsizing statistics, the number of employees being let go, or reasons why he specifically was selected for termination. If there is a chance of rehire when the company rebounds, include this information as well. Your employee may wish to turn down interviews for other positions if the layoff is suspected to be a temporary downsizing.
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Contact your legal department and ask if it is necessary to have the employee sign a release of liability. This document prevents them from suing you for wrongful termination. You should not draft this yourself. An improperly worded document could be rendered invalid in court. Decide on an incentive to offer the employee if he signs the release, such as increased severance pay.
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Talk to your employee at the end of the day, not the beginning. They may want to leave work and get some distance from what has happened. Firing someone at the end of the day is less disruptive to the entire workplace. Ask the employee to come back to your office when you are ready to speak with her. Sit down and ask her to sit down. This should be done privately, with only you and the employee in the office and the door closed.
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Tell the employee that he's being laid off right away. Explain when he has to stop working and why he's being laid off. Give specifics about why the company is downsizing, if you can. Tell him his chances of rehire in detail.
Hand him the memo explaining that he is laid off and giving a list of reasons for the layoff. He may be too stunned to process what you're saying immediately. The memo will help him understand exactly what has happened and to remember the details of what you said later when he thinks back on the conversation.
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Let the employee talk about her feelings about the layoff. You don't need to comment on what she says, but letting her vent can be beneficial for her. Let her ask questions and answer them, even if the information can be found in the layoff packet. Take your time discussing the layoff and the details of the termination.
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Give the employee a folder with his transition information package. He may not be able to process all the information in the folder right away. Tell him that he can contact you to discuss the package any time he wants. Write your phone number down on the folder or give him your business card. He may not have your phone number handy at home.
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Ask your employee to sign the release of liability. Explain that he is receiving a certain amount of severance pay no matter what he chooses, but that you will increase that amount if he signs the form. Explain the purpose of the form to him and tell him that he can consult an attorney, if he chooses, before signing. Give him a copy of the form and, if he wants to have an attorney go over it first, ask him to contact you when he has made a decision.
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Offer the employee a letter of reference. Compliment her on the job she did and explain that layoffs are not about employee achievement, but about internal company circumstances. Thank her for her work and tell her to take her time saying goodbye and clearing up her desk area.
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Tips & Warnings
Conduct layoffs early in the week, if possible. This gives employees business days to use making contacts, instead of dwelling on the layoff over the weekend.
References
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