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Legal Issues in Reduction of Workforce
FastServe Inc. is a marketing company dealing with sports apparel. In recent years FastServe Inc. entered in new territory by marketing their products online. However, the venture did not work out as planned and the company is now forced with employee layoffs. In the online simulation, the company has submitted the names of five employees for possible termination. The following paper will explore consider the ramifications that can arise from the dismissal of these employees. The paper will also analyze the legal regulations that can affect the dismissals.
Cost savings is one of the reasons companies decide to reduce their workforce. Employers have the right to terminate employees provided that laws and regulations are observed. In the case involving FastServe, each of the five employees that are being considered for termination have mitigating circumstances that must be considered prior to termination of employment; for example, four of the employees are under contract. To terminate these employees contracts, FastServe must exercise the terms of the contract. The company must come to an agreement with the affected employees to avoid litigation for wrongful termination. These agreements must be tailored depending on the terms of each contract. The online simulation does not provide any details on the employees’ contracts. Besides the existence of contracts with some of the employees being reviewed for termination, there are other legal risks that the company must take into consideration before terminating an employee.
Each of the employees selected for possible termination has a possible claim to wrongful termination if the process is not handled correctly. To start, Brian Carter is an employee who is suffering from carpal-tunnel syndrome. This ailment can limit the ability of this employee to perform his duties. The existence of this condition should not be a factor for termination of this employee....