Layoff/Involuntary Reduction in Time: Policy-Covered Employees

Topics Scope Notice of Layoff or Reduction in Time
Overview Rights to Severance Pay
Responsibility Rights to Recall & Preferential Reemployment
Requirements for Business Plan Forms/Resources

Requirements for a Business Plan

1. Reason for Layoff

The Business Plan shall include information to support a business need and the reason for the layoff. The reasons for layoff are lack of funds, lack of work or reorganization. For example, the Business Plan should explain:

  • Why funding was lost - e.g., grant not renewed, funding exhausted, identify funds affected and, if applicable, whether work has been reassigned.
  • The reasons for a reorganization - e.g., changes dictate that work be performed in a different way or technology eliminates the need for certain tasks to be performed.
  • Why there is a lack of work - e.g., a project phase ended or a project is completed.

2. Layoff Justification

To determine the order of layoff, the Business Plan must include an evaluation of the relevant skills, knowledge and abilities, documented performance appraisals and disciplinary records and length of service of the employees potentially impacted by the layoff and why a specific employee is being laid off in lieu of other employees in the same job classification, salary grade and layoff unit. This evaluation will be summarized in a Layoff Justification Template.

The criteria used by the department in the evaluation and entered into the matrix include the following:

  • Seniority –Request seniority points from the department’s Employee and Labor Relations (ELR) Analyst for the classification and layoff unit where a layoff is being contemplated. The seniority points will provide the department with a seniority list of employees in the targeted classification.

  • Skills, Knowledge and Abilities (SKA's) – Review and document any circumstances where any of the employees in the classification and layoff unit possess SKA’s that are required to perform the ongoing functions of the department and that are not possessed by the employee identified for layoff. Critical sources of information regarding skills, knowledge and abilities are the job description associated with the employee’s role and job application and/or resumes for each employee in the classification, salary grade and layoff unit;

  • Performance Appraisals – For each employee in the classification and layoff unit, review and document the performance appraisal rating from the two evaluation periods immediately preceding the date of the Business Plan. If the most recent evaluation is beyond two years, satisfactory performance will be presumed;

  • Disciplinary Records – Review and document any disciplinary records for the two year period preceding the date of the Business Plan. Disciplinary records include letters of warning, letters of suspension, letters of warning in lieu of suspension, demotions and final letters of warning.

Using the information obtained from evaluating the SKA’s, performance appraisals, disciplinary records, and seniority of the employees in the target classification, the department will:

  • determine if there are any affected employees possessing special skills, knowledge or abilities to perform certain functions which are essential to the job and to the department’s operations;

  • determine whether all affected employees are performing equally based upon performance appraisal ratings;

  • determine whether disciplinary action has been taken against any affected employees in the two-year period preceding the decisions to implement layoffs; and

  • document the rationale used for retaining each employee out of seniority order.

When multiple employees have the same SKA’s, and are performing equally (based on performance appraisal ratings and disciplinary records), employees with greater levels of seniority will have priority for retention. In the event employees are equal in seniority, the employee with the most recent date of appointment (in current position) will be laid off first, except that an employee may choose to waive seniority in order to be designated for layoff.

In the event that all of the positions in a classification (including a single position classification) are identified for layoff, the evaluation of the relevant skills, knowledge and abilities, documented performance and length of service is not required. The department needs to state that all the positions in the classification are being eliminated (or that there is only one incumbent in the classification) and identify the employees to be laid off.

For each Business Plan, the department must be prepared to submit, if requested by Employee and Labor Relations copies of the following items if requested:

  • performance appraisals;

  • disciplinary records;

  • job descriptions; and

  • Job applications/resumes for each employee in the same classification, salary grade and layoff unit.

3. Disposition of Work

The Business Plan must identify what work is being eliminated and what work will be performed by other employees. Attach organizational charts reflecting the department structure before and after the layoff.

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Revised October 2012