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Legal Issues in Reduction of Workforce
Introduction
FastServe Inc. is a $25million company involved in the direct marketing of branded sports apparel. They once had two online websites, one for girls and one for boys. The websites didn’t do well and became and expense and subsequently that division had to be disbanded and the websites shutdown. Due to this shutdown, FastServe will now have to reduce its workforce by 10% in an effort to decrease their expenses. Subsequently, a list of 5 employees was compiled and of those five, three must be chosen to be terminated. However, due to the laws, the choices have to be made carefully. If the wrong person is terminated for the wrong reason, this could have a very detrimental affect on the company. Before making the decision on whom to terminate, management will need to evaluate employment laws and how those laws affect each person being considered, determine if any extenuating regulatory circumstances come into play with each candidate, evaluate the agency principle and make sure the right choice is being made for the right reason, and management will need to evaluate the reasons for the choices made. FastServe’s management needs to make sure they are acting in the best interest of the company, not only to help it get past this difficult time, but to also make sure the company is not left open to wrongful termination lawsuits.
Fast Serve’s management has identified a list of five candidates for termination from the company. This list includes: Carl Haimes, Brian Carter, Sarah Boyd, Nora Manson, and Jenny Mills. All parties have good points and bad points, some more than others. All these points have to be evaluated when making the decision whom to retain a ...