Planning For Reorganizations And RIFs

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Historically, the healthcare industry has not experienced layoffs of the magnitude seen by manufacturing and other sectors during the recent economic downturn. But with changes in healthcare, including changes in reimbursements, some employers may be faced with difficult choices, including reorganizations and layoffs.

Proper planning for a reduction in force (RIF) requires time. Human Resources professionals are wise to ensure that management is aware of all that's required. You do not want your CEO to tell you Tuesday that a reduction in force must occur on Friday.

Here are several of the key steps that should be considered if a reduction in force may be in your company's future.

Step 1 – Planning the RIF: Advance planning is the key to success, and effective planning requires an understanding of the business rationale and objectives of the reduction in force. Therefore, as part of the planning, it's important that you review relevant policies, agreements, commitments, collective-bargaining obligations, and anything else that could affect selections.

Step 2 – Prepare a Program Document: We recommend that you work with counsel to prepare a program document which includes an EEO statement, documentation of the business case for the RIF, and documentation of the selection process for both hourly and salaried employees. The program document should also require training for supervisors and managers on the selection process, and should establish a review committee to analyze all proposed selections.

Finally, include an appeals process so that those selected for job elimination have the opportunity to appeal their selection. This gives you a second opportunity to ensure that proper processes have been followed.

Please see full article below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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