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Cathie's Corner Blog

The Myths Of Job Elimination

(Termination) Permanent link

(Published August 31, 2009)

A lot of employees don't understand that job elimination is a headcount issue and not the elimination of their job duties. They assume that if their job is eliminated, that means that whatever they have been doing no longer needs to be done, and whatever their specific job duties have been will no longer be handled by anyone.

It's made even more confusing by a mistaken public perception that if you are laid off, the employer cannot hire anyone else for your position without first offering the job back to you. I don't know whether this is due to a misreading of the WARN Act (Worker Adjustment and Retraining Notification Act) or what, but I can't tell you how many people have asked me if it isn't the law that their employer can't rehire for their position unless they've been called back to work first. Of course, the law doesn't say anything of the kind. Rehiring is entirely up to the employer, unless there is a legally binding contract or collective bargaining agreement that says otherwise.

When a laid-off employee has these misperceptions and hears through the grapevine that Joe or Sally or Sabrina is now handling their duties, they assume that their job was not eliminated at all and that there must be something fishy about their termination. "After all," they reason, "my work is still being done, so my job wasn't eliminated. And I wasn't offered my job back. And my employer [did/did not] contest unemployment, which means they must know they did something wrong. I should talk to a lawyer about a potential wrongful termination claim." (Note: I've found that both contesting and not contesting unemployment claims can be twisted this way, depending on the employee's perspective.)

And that brings up still another interesting misperception, which is that if unemployment benefits are granted, it's a sign that the employer was "wrong" to terminate. There are far too many people out there (I meet them frequently) who believe that receiving unemployment benefits is a sign that their termination was illegal.

What can we do about this in our HR role? Maybe we should make sure, when we give employees the bad news, that they understand the difference between a headcount reduction and the elimination of actual duties. It might not even be a bad idea to ask them to hand off anything that's unfinished to Joe or Sally or Sabrina, explaining that they will be handling the laid-off employee's duties from now on. At least they'd know up front. I think most people appreciate honesty.

I think it would also help if we told them that we would not contest unemployment (when we're not planning to). Employers should not contest unless there is really a valid reason to do so. Some places (I'm sure not any of your employers) automatically contest every unemployment claim and that just detracts from our credibility.

As far as rehiring goes, that's pretty situation-specific, but if you do regain funding or get that account back or for whatever reason are able to increase your headcount again, what can it hurt to give good ex-employees a chance at their jobs again? If you've kept good documentation during their employ, that should provide what you'd need in the event that that employee (you know, the one that you could hardly wait till the door was shut behind him before you started doing the Snoopy dance, you were so glad to see the end of him? The one that you had to hire extra space from Iron Mountain to fit in his file, he had so many write-ups? Yeah, that guy) comes complaining that you didn't rehire him, and, therefore, there must be some discrimination going on.

You can't please everyone….

Catherine Bannon is an HR consultant in Marshfield, MA (catherine.bannon@gmail.com). Bannon worked for 10 years in HR management before starting her consulting practice.


And then there's the remaining employees who get angry that they have to take over duties of the laid off person. They argue that if the job really needed to be done, the other person shouldn't have been laid off. Should ask them if they would like to trade positions and be the one laid off.
Posted by: Kristy at 9/1/2009 12:58 PM


The problem is we use the term laid-off which has always been associated with the Union practice of laying off employees during slow times and then returning them to work when things pick up. HR needs to stay away from using terms that might lead employees to believe it is any thing other then a permanent elimination of the employment of the employee. When discussing unemployment benefits, notify the employee they are eligible for benefits and the reason why, not that you will not contest it. this will help support the reason the employee is no longer employed and why.
Posted by: Dan at 9/3/2009 10:03 AM


Or as I tell my coworkers "why do I have to keep paying you and go back redo all your work" I usually end up letting that individual go and the have the deer in headlights look when they are told bye bye.
Posted by: Keith at 9/3/2009 10:07 AM


Misusing terminology will definitely get you in trouble. First, if you have an employee not doing their job then counsel them out the door with documentation to support the action for poor performance. These you may have to defend but you have your support. If you are letting good people go because of downturn in business, lack of funding or the like, then why would you not contact them and see if they are interested in coming back? They were good and you want good employees. If you chose to use the RIF as a means to get rid of a problem you were never really capable of confronting then maybe it was a wrongful termination. When times have been generally good overall, good employees released in a RIF have secured other employment and more times than not are not interested in returning. In bad times such as these that may not be the case. Use good business sense and you won't have to worry.

You are correct, there is no legal stance to rehire a legitimate RIF person if you regained the financial capability of hiring someone in their exact job. However, if you let someone go because of a supposed "lack of work", etc. reason and a week later you hired a new employee to do that exact job, something will be deemed fishy about that maneuver. I have seen companies that will purposely not refill a position for 6 months to a year to "play it safe" on not having to rehire someone. There are many other war stories to substantiate this practice. No matter what, you are not onligated to rehire even if you do interview them for the position they left. If you have another candidate that youcan substatiate they are a better hire, then you hire them. If you take that position in any hiring practice you never have to worry.
Posted by: Garin Danner at 9/3/2009 12:23 PM


As others have pointed out, terminology that is used is very confusing. Attorney(s) that I have worked with in the past have stressed using the "position eliminated" term to avoid (as much as possible) litigation rather than the term "lay-off". Unfortunately when the employee is informed his/her "position" has been eliminated, it appears that the functions previously performed are no longer necessary. When the former employee discovers that some is "doing their job" that is the first step to litigation. I ahve been in HR for over 20 years and definitely had more than my share of RIFs, reductions, layoffs,job eliminations, position eliminations--but the need result is the same, people lose their jobs. The bottom line is this is a cost cutting measure. Employees are a mix--not everyone who loses their job is a poor performer--just as not every employee who stays is a "top performer". But, the one comment I would make is that sensitivity should be used, especially considering the potential for workplace violence,this is not the time to be flip.
Posted by: Merlynn Bertini at 9/24/2009 5:45 PM


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