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Reorganizing your business? Take care with terminations

Reorganizing a business involves a number of details and moving part which need to be addressed and managed. Failure to do this can lead to avoidable mistakes that can ultimately cost a lot of money and even jeopardize the future of a reorganized business.

One such detail that you may need to confront head-on if you going through a reorganization is how to deal with the people whose jobs may be terminated as part of the new structuring. Unfortunately, this is often a necessary part of a business strategy as it can work to streamline business and manage costs. But oversights in certain areas of this process can prove to be detrimental.

Before you decide to lay-off or fire workers, you need to first ensure that you are very clear on potential obstacles. For example, do certain employees have contracts in place? If you breach that contract, are you prepared for the fallout? Is there any indication of discrimination in your firing decisions? Will you have the resources necessary to operate your business after letting people go?

These are just some of the questions that you must ask prior to making large-scale employment decisions in light of reorganization.

Columbus-based Victoria's Secret likely examined these questions before it recently eliminated 200 jobs in light of reorganization of parts of the business. Under new leadership, the company is restructuring to capitalize on increasing profits and that means eliminating redundant jobs.

While your decisions may not affect hundreds of workers or involve the restructuring of a global brand, you still must be deliberate and cautious when it comes to employment decisions during this time. Making a mistake that jeopardizes your business or violates employee rights can prove to be devastating and it will be crucial to avoid these missteps.

Discussing your options and your rights as a business owner with your attorney prior to making any of these critical decisions can help you protect yourself and the future of your company.

Source: Columbus Business First, "Victoria's Secret cutting 200 jobs amid reorganization," Dan Eaton, April 6, 2016

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