As the economy plummets in recession, employers are facing bigger ordeals on how to address staffing issues and cut costs while avoiding hot seat on the courtrooms.  While many employers are thinking of putting their employees on lay-off, they may be facing legal issues alongside and this the unhealthiest issues of staffing.

 

To lay-off or not to lay-off

 

Whichever option is chosen, they are bound to certain laws and agreements.  Companies who would choose to lay-off their employees are bound to law concerning payment until such employee finds a new job; furthermore, a notice of contract termination should be tendered and must be accepted by the receiving party with a valid reason.  That company may also faced court ruling and explain their actions, which in part shall means additional cost on litigation.

 

For most companies they choose not to lay-off particularly those who employ diverse workers avoiding conflicts and cultural issues to among minorities, aboriginals and persons with disability.  Lay-off could target those employees and may sue the company for such act.  The government however offers ways to reduce friction between company and their people through Work Share Program.

 

Work-Sharing Program provide employees affected with reduced work week schedule the benefits of having Employment Insurance for the days not worked.  While lay-offs needs enough time to implement and issues on extended notice, Work-Sharing Program has no usual waiting period.  The Federal Government announced in 2009 that it will increase the maximum number of weeks covered to 54 from the previous 38 weeks, this however has yet to receive Royal Assent. 

 

To qualify for the program the business have been operating for two years and demonstrates the need to reduce its employees working hours “temporarily�, unavoidable and not seasonal and that the employer must have a recovery plan with a reasonable expectation within 6 ½ months. 

 

Employees who qualify for the Work-Share Program must work extra days if necessary and the amount shall be deducted from the EI benefits.  While there is no waiting period, the first cheque would likely be available within 28 days and if the employee is laid off or terminated during the work-share period or after, regular EI benefits are still unaffected.

 

Here are the lists of requirements for Employers during the Work-Share Period

-          Provide employees with ROE

-          Assist employees with preparation of bi-weekly report cards

-          Prepare utilization reports for every 2 week period including hours worked by employees and how their time was spent

-          Make work share information available to employee

-          Maintain all benefits through work share period, though some may be reduced due to work schedules

-          Advise Commission of lay-offs or terminations

-          Lay-offs must be pre-approved by the Coordinator and the workers remaining on the work share program must also agree to remain in the program

-          Optional hiring is necessary to replace existing employees, however this action must be approved by the Commission

-          Pay statutory holidays (EI will not cover this)

-          Report progress on recovery plan

-          Report overtime hours worked by employees

-          Advise Service Canada of any changes on work schedules and or agreements