![Page 1: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/1.jpg)
![Page 2: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/2.jpg)
HR Practices in a Recession: Exploring the Options
OMHRA: September 17, 2009
![Page 3: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/3.jpg)
3
Union vs. Non-Union Options
• More control over non-union employees• Measures are often directed at non-
union employees• Collective agreement will largely dictate
measures that can be used
![Page 4: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/4.jpg)
4
alternatives to termination
Cost Cutting:• reduced or time-limited health benefits• training and development restrictions• reduced travel budgets
![Page 5: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/5.jpg)
5
alternatives to termination
Cost Cutting:• demotions • salary freezes• bonus controls
![Page 6: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/6.jpg)
6
alternatives to termination
Maintaining Staffing Levels:• vacancy management• hiring freeze• redeployment
![Page 7: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/7.jpg)
7
alternatives to termination
Working Hours:• reduced work hours• work sharing • overtime control• managing absenteeism
![Page 8: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/8.jpg)
8
alternatives to termination
Staff Reductions:• temporary lay-offs • voluntary unpaid leaves• voluntary retirement
![Page 9: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/9.jpg)
9
alternatives to termination
Be Careful of Constructive Dismissal!
• unilateral changes: on consent on notice with consideration
• otherwise, potential constructive termination of employment
![Page 10: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/10.jpg)
10
alternatives to termination
Considerations:• impact of constructive dismissal • employee’s duty to mitigate by accepting
the change
![Page 11: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/11.jpg)
11
alternatives to termination
Duty to Mitigate in a Recession:• reason for change• manner in which change is
communicated• one employee or several affected
![Page 12: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/12.jpg)
12
alternatives to termination
Overall Questions:• can it be seen as humiliating? • is it an attempt to avoid severance
obligation?
![Page 13: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/13.jpg)
13
alternatives to termination
Cost Cutting:• potentially lesser impact • employees may be more amenable• can provide significant savings• don’t be short-sighted
![Page 14: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/14.jpg)
14
alternatives to termination
Cost Cutting:• is it humiliating? fundamental?• disproportionate impact on certain
employees?• pay increases a fundamental term of
employment?
![Page 15: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/15.jpg)
15
alternatives to termination
Demotions: • in context of restructuring• coupled with offer of severance• again…mitigation issues• morale issues
![Page 16: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/16.jpg)
16
alternatives to termination
Redeployment:• moving employees to open positions• terms of employment – stay the same
or based on position• union cooperation• voluntariness important
![Page 17: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/17.jpg)
17
alternatives to termination
Reduced Work Hours/ Work Sharing: • shared amongst several employees• Work Sharing 2009 – Service Canada• voluntary participation• what if they don’t agree?
![Page 18: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/18.jpg)
18
alternatives to termination
Reduced Work Hours/ Work Sharing:• back to normal after the recession• humiliating?• potential claims
![Page 19: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/19.jpg)
19
alternatives to termination
Overtime Control and Absenteeism:• assertively managing absences to avoid
overtime• managing strenuous workloads• wellness programs• changing expectations re: work
outcomes
![Page 20: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/20.jpg)
20
alternatives to termination
Temporary Lay-offs and Unpaid Leaves:
• lay-offs per Employment Standards Act• in employment contract or collective
agreement?• common practice?• if not, deemed termination at common
law
![Page 21: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/21.jpg)
21
Temporary Lay-offs and Unpaid Leaves:
• practical risks/rewards• morale issues• timing the layoff
alternatives to termination
![Page 22: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/22.jpg)
22
Voluntary Retirement: • human rights concerns• individually targeted• available to all employees?• what about key employees
alternatives to termination
![Page 23: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/23.jpg)
23
basic legal framework
![Page 24: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/24.jpg)
24
basic legal framework
Types of Termination Payments:
• Employment Standards Act:• notice/pay in lieu of notice• severance
• Common law:• reasonable notice
![Page 25: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/25.jpg)
25
basic legal framework
Employment Standards:
• minimum only• employee can’t agree to less• must continue all benefits and forms of
compensation
![Page 26: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/26.jpg)
26
basic legal framework
Common Law:
• bridge between jobs
![Page 27: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/27.jpg)
27
basic legal framework
Common Law:
• factors for notice period:• length of service• position• age
• no standard formula
![Page 28: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/28.jpg)
28
basic legal framework
Impact of Employment Contract:
• can establish notice period• governs on termination• limits exposure and need to litigate
![Page 29: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/29.jpg)
29
structuring the package
![Page 30: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/30.jpg)
30
structuring the package
Structure:
• working notice vs. pay in lieu• lump sum payment vs. salary
continuance
![Page 31: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/31.jpg)
31
structuring the package
Working Notice or Pay in Lieu:
• working notice rarely works• demoralized employees aren’t
productive• pay in lieu best option
![Page 32: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/32.jpg)
32
structuring the package
Making Working Notice Work:
• more than one person affected • retention bonus• resignations during working notice
![Page 33: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/33.jpg)
33
structuring the package
Lump Sum vs. Salary Continuance:
• length of the notice period• <4 months’ pay as lump sum• prospects of re-employment • clean break
![Page 34: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/34.jpg)
34
structuring the package
Salary Continuance:
• incentive to find new employment• bonus on alternate employment• definition of alternate employment• confirmation of employment status
![Page 35: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/35.jpg)
35
structuring the package
Assistance with Mitigation:
• providing reference letters• offering outplacement counselling
![Page 36: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/36.jpg)
36
strategy
![Page 37: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/37.jpg)
37
strategy
Reductions in Force:
• using formulas• based on position
• bump up for age
![Page 38: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/38.jpg)
38
strategy
Cost Savings Can be Risky:
• some employers just giving ESA minimum
• employees may be more likely to litigate
• may face class actions• at least give a small top up
![Page 39: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/39.jpg)
39
strategy
Negotiating:
• leave room to negotiate• time can be your best defence• negotiate only after signing date for
all employees
![Page 40: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/40.jpg)
40
strategy
Employees on Leave:
• using restructuring to get rid of employees on leave
• impact of media hype • legal risk – ESA and human rights• when to notify the employee – timing
is everything
![Page 41: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/41.jpg)
41
strategy
What To Ask For:
• signed release• restrictive covenants
non-solicitation confidentiality
![Page 42: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/42.jpg)
42
delivering the news
![Page 43: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/43.jpg)
43
delivering the news
• how to address reductions in force• when and how to deliver the news• minimizing the pain and uncertainty
![Page 44: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/44.jpg)
44
after the termination
• keep notes of the meeting• provide a timely ROE • cause = M (dismissal)• without cause = K (other)
![Page 45: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/45.jpg)
45
after the termination
Unconditional:
• letter of reference (at the termination meeting)
• ESA payments even if negotiating• outplacement counselling
![Page 46: HR Practices in a Recession: Exploring the Options OMHRA: September 17, 2009](https://reader037.vdocuments.us/reader037/viewer/2022110320/56649c985503460f949537b2/html5/thumbnails/46.jpg)
46
Questions: