Legal Issues in Reduction of Workforce Simulation
Due to the increase in competition and the rapid technology development, companies are making changes to how they operate, organize work and manage their human capital. As employees increasingly take advantage of new technology, companies are finding the need to restructure their staff. (Lieberman, 2001).
This changes present legal challenges and risks for human resources. However, with proper planning for potential charges of discrimination or other employment law issues can be anticipated and avoided. This paper will identify in a table, the key concepts of employment law that would affect each of the 5 candidates for dismissal. The paper will explain the extenuating regulatory circumstances that would affect the decision of the layoff. It will also analyze to what extend does the employee termination decision align with the best interest of the organization. Lastly the paper will discuss how to balance the legal risk of terminating individuals from a protected class against the business risk of losing valuable talent.
FastServe Inc. is an established branded sport Apparel Company, which employs 350 individuals, and their projected annual earnings are 25 million. FastServe Inc.’s products appeal to a large customer base that includes the population that is interested in sports activities which is Labeled America’s sport-crazy Generation Y segment. FastServe had developed two different websites one for boys and one for girls, online marketing and distribution that will allow the organization to increase in assets. 10 percent of FastServe’ workforce was moved to manage the online business. The company is unarguably a leader in its industry. However, such a status does not imply that the company is without economical and inter-company problems.
Due to a recent decrease in sales and staggering profits, FastServe was forced to reassess its marketing and distributing...