Why a RIF?
Before slashing the numbers of its work force, an employer must first determine whether a RIF is the appropriate solution. It may be that a hiring freeze, salary reduction, increased employee contribution for insurance premiums, or attrition would address any budgetary issues and would result in the necessary cost-savings. An employer may also wish to explore furloughs, shutdowns, voluntary or compulsory reductions in hours across the board (with a commensurate reduction in pay), or a voluntary retirement/layoff incentive program. However, if a RIF is the appropriate solution, an employer must develop, and follow, a process to minimize exposure. Selection Criteria After deciding that a RIF is necessary, an employer must articulate legitimate business reasons for it, such as eliminating a product or service line (due to decreased demand), closing a facility, loss or slow down of business, or general reorganization. The employer should have a clear understanding of how its current work f
