What is the process of layoffs in the company?
What is the process of layoffs in the company?
Four steps of enterprise layoffs
Step 1: Make a plan.
The most important thing in any job is always "preparation" Inadequate preparation means that the result is likely to fail. For the problem of layoffs, many business leaders often decide the layoff plan at the last minute, but they are too anxious to disclose it to their employees. The development of modern enterprises requires enterprises to change their mentality, regard layoffs as an important part of normal human resource management, treat layoffs from a strategic and management perspective, and plan and manage them scientifically and reasonably. Lawyers believe that in the process of making a layoff plan, we should pay attention to the following aspects:
1. design process
There are many kinds and opportunities of layoffs in enterprises, and enterprises should design appropriate layoffs processes according to different situations. The layoff process should be integrated into the enterprise management system and should not be involved at the beginning of layoff. The first consideration of process design is not a specific person, but to analyze and sort out the business process of the enterprise, and cooperate with the reorganization of the functions of the enterprise departments and the redesign of the post structure to make the process design practical and operable.
For economic layoffs and other laws, specific provisions have been made, and enterprises should design the layoff process according to the legal provisions.
If there is no fixed procedure in laws and regulations, the layoff procedure can be a little more flexible. In the process design of mass layoffs, employers should fully consider the roles of administrative departments, trade unions and media departments and formulate corresponding plans.
Determine the goal
No matter what kind of layoffs, enterprises should determine the layoffs that meet the actual needs of their own business development, and make a comprehensive analysis of the positions that need to be laid off and the employees who undertake the positions to see if they will be laid off with the positions.
There are generally two possibilities: first, employees are laid off with their posts; Second, jobs are laid off and employees stay.
In the second case, it is necessary to analyze the employees who have not been laid off in other positions to see if they need to be laid off. Some positions need to be reserved but not necessarily, so that employees in the second situation can supplement these positions. The second treatment depends on the feasibility of enterprise job-hopping and the adaptability of these employees.
Seek advice
Before formally determining the target of layoffs, the opinions of department heads and other relevant business departments should be sought. Enterprises should first explain the situation to their senior managers and trade unions, listen to the opinions on the layoff plan, revise and improve it, and formulate the layoff plan (draft for comments). When economic layoffs or negligent layoffs need to listen to the opinions of the enterprise trade union, formal meeting minutes shall be made, signed by the participants, and an investigation shall be filed.
4. Determine the layoff plan
Before the formal implementation of layoffs, human resources departments and other departments should formulate a feasible layoff plan, including budget expenditure, compensation that meets legal requirements, appeasement of laid-off employees, and help or assist laid-off employees to find new jobs.
In case of economic layoffs, the enterprise shall hold a meeting of all employees, and the specific date and place shall be notified before the meeting. The date of the meeting shall be arranged 30 days before the formal termination of the labor contract, and the employees who cannot be contacted directly shall be notified by effective means (such as registered mail, post, etc.). The enterprise shall organize a written sign-in for each inspection when the employees attending the meeting enter the venue. An enterprise shall explain the background of layoffs (generally including operations and assets) and the specific contents and operation steps of the layoff plan to employees at the meeting, and fully grasp employees' opinions and suggestions on the layoff plan by listening to employees' opinions at the meeting or collecting employees' written opinions after the meeting. The enterprise shall make meeting minutes for future reference. After the meeting, the opinions and suggestions put forward by employees should be sorted out and analyzed, and the employees who put forward opinions and suggestions can be answered and explained through interviews, especially to ease the emotions of the employees who have objections. If the trade union or workers reflect that the laid-off workers meet the statutory scope of not being laid off or the laid-off workers meet the statutory scope of priority retention, the enterprise shall re-verify. If the situation is true, they shall not be laid off or given priority retention. If the situation is not true, they shall reply to the trade union or workers. Enterprises should fully explain or reply to the opinions or suggestions put forward by employees one by one to ensure that employees have no obvious opposition before formally determining the layoff plan.
5. Prepare for layoffs on the spot
In order to ensure foolproof, enterprises should make further preparations before the formal implementation of layoffs, focusing on:
(1) After careful communication, all departments fully realized the necessity of layoffs; (2) The Human Resources Department has prepared resignation list, confidentiality agreement and other documents; (3) The financial or human resources department has calculated the employee's compensation expenses; (4) The network management department or the administrative department is going to change the security password of the company's doors and computers; (5) Prepare the telephone numbers of the emergency center and the security department, and ask the assistant or secretary to pay attention to emergencies during layoffs when necessary.
6. Fulfilling reporting obligations
In case of economic layoff, the enterprise shall report the preparation process and final layoff plan in writing to the local labor and social security department. The written report shall explain the reasons for the retrenchment of the enterprise, the basic situation of the retrenched personnel, whether the situation has been explained to the trade union or all employees, the opinions of the trade union or employees, the person in charge and the contact information, and attach the retrenchment plan and relevant certification materials. If the labor and social security department puts forward opinions or suggestions on layoffs, the enterprise shall seriously study them, solve them one by one according to law and report them in writing until the labor and social security department finally approves them. Where the labor and social security department directly mediates and coordinates layoffs, the enterprise shall actively cooperate.
7. Implement layoffs
For employees classified as layoffs, the enterprise shall issue a written certificate of dissolution or termination of the labor contract. The written certificate shall specify the employee's post, the term of the labor contract, the date of dissolution or termination of the labor contract, the working years in the unit, etc.
Enterprises should prepare all documents before announcing the decision to dismiss employees. Wages, including other income, holidays that employees do not enjoy, should be handled in time. This not only embodies a good enterprise system, but also involves legal issues.
It is best for enterprises to pay all the labor remuneration of laid-off employees in full while making the decision to lay off employees; On the day when the laid-off workers complete the handover, they shall pay the economic compensation for the dissolution or termination of the labor contract in full in accordance with the law; For qualified personnel, legal fees such as disability allowance and pension shall also be paid; The enterprise shall handle the file transfer procedures for laid-off workers within 15 days from the date of dissolution or termination of the labor contract, and handle the social insurance benefits application procedures and transfer procedures according to law.
8. Subsequent obligations
After the layoff, the enterprise shall collect and summarize the text of the laid-off employee's labor contract, the wage payment ledger (including the certificate that can prove that the employee has received the corresponding salary), the labor contract sign-off publicity form and other documents (paying special attention to retaining the contact information of the laid-off employee), and file them for future reference. In general, it should be kept for at least two years.
In order to avoid disputes, enterprises should also fulfill their follow-up obligations according to Chinese laws, such as giving priority to the laid-off employees within 6 months after the implementation of layoffs, and giving economic compensation to the workers on a monthly basis during the non-competition period.
Step 2: Define the goal of layoffs.
There are three factors that determine the number of redundant employees in an enterprise:
(1) Number and quality of existing employees;
(2) labor capacity and post setting of the enterprise;
(3) Enterprise's demand for human resources. Theoretically speaking, redundant employees in enterprises are employees that are not needed for enterprise development. "Unnecessary" is manifested in three aspects: (1) the technical needs of enterprise production and operation, that is, it cannot meet the requirements of labor quota and production technology; (2) Unnecessary organizational systems of enterprises, such as violation of rules and regulations, are not conducive to the construction of corporate culture; (3) There are more employees than the human resource needs of the enterprise.
From a qualitative point of view, employees whose actual workload is lower than the average labor quota are redundant; In terms of quantity, the supply of existing employees in enterprises is greater than the demand of human resources in enterprises, which is the number of surplus employees.
Lawyers believe that in specific operations, enterprises can refer to the following individual identification technologies to make judgments:
(1) labor quota judgment method
Labor quota refers to the pre-set limit of living labor consumption of qualified products or certain tasks by production units under certain production technology organization conditions (the determination of labor quota is generally determined according to industry standards, standards of other enterprises or similar foreign enterprises, experience of designers and other labor quota standards). This kind of living labor consumption quota is usually manifested as time quota (also known as man-hour quota) and output quota. Generally speaking, employees who can't meet the quota set by enterprises should be laid off.
(2) post demand judgment method
On the premise of determining the position of the enterprise, we can judge the surplus personnel of the enterprise through the position quota of the enterprise.
Post means that in a certain workplace or work scope, the staff should have the authority and corresponding responsibility to complete relatively independent labor content according to certain technical requirements or operating norms.
The determination of enterprise posts depends on the workload, labor quota, organizational structure and function of the enterprise.
Its main process is post classification and post quantification. In the case of a certain post, the amount of work tasks and labor quota determine the amount of labor, that is, the amount of work tasks ÷ labor quota = labor. Per capita labor productivity = labor quantity. This labor force is the actual demand of enterprise personnel. In the absence of job vacancies, the number of jobs in an enterprise is equal to the number of workers. If the actual number of employees exceeds the number of posts, it can be judged that there are redundant employees in the enterprise.
(3) labor productivity judgment method
The method of enterprise labor efficiency quota is to calculate the quota according to the production tasks stipulated in the enterprise plan and the labor efficiency of workers. Labor efficiency can be measured by value indicators such as output value profit and sales volume, or by output physical indicators or labor working hours and time indicators. Its expression is yuan person, output/person, or output/per capita working hours, working hours/unit output.
The calculation formula of labor productivity is: number of employees = production tasks to be completed/(employee labor productivity × attendance rate): if the actual number of employees exceeds the number of employees calculated by the above formula, it should be judged that there are surplus employees.
If labor quota is used to replace workers' labor productivity, normal attendance factors should be considered, and at the same time, proper attention should be paid to whether jobs can directly measure labor efficiency or the scientific nature of labor quota indicators.
(4) enterprise equipment judgment method
The quota method of enterprise production equipment is to calculate the quota according to the number of mechanical equipment used by enterprises and the supervision quota of workers. The calculation formula is as follows: number of employees = (number of equipment starts × number of work shifts per day)/(nursing quota of workers × attendance rate). When the actual number of employees in the enterprise is more than the number calculated by the above formula, it should be judged that there are redundant employees.
(5) the method of judging the rate of return of labor cost
The condition for an enterprise to use labor force is that the marginal income of labor force is greater than the marginal cost of labor force, that is, the value created by this employee is higher than the wage cost paid by the enterprise for him. For enterprise-specific human capital investment, there is a certain relationship between an individual's age and salary, and between age and productivity. The specific relationship is as follows:
Generally speaking, young workers have lower costs and higher corporate returns, while old workers have the opposite. However, there are quite a few restrictions on the severance of old employees, so many enterprises have adopted the way of "early retirement" or "buyout the length of service" to give economic compensation for severance, which directly increases the cost of enterprise severance, and the specific amount of the cost depends on the comparison of their respective costs and benefits.
In fact, it is easy to ignore individual differences and violate the principle of concrete analysis of specific problems by deciding the laid-off objects only on the basis of labor input and output, especially on the basis of age. Enterprises should determine the laid-off objects through comprehensive evaluation and relative comparison of skills and talents, and at the same time identify and compare them according to the principle of individual differences, so as to scientifically determine the laid-off objects.
Step 3: Protect key talents.
The purpose of layoffs is to reduce the cost of enterprises in order to improve production efficiency and increase benefits, so it is also necessary to ensure the normal operation of all departments of enterprises.
Relevant personnel believe that enterprises should first consider the way of performance appraisal, and determine the target of layoffs by combining the assessment results with factors such as attendance records and work performance. This can not only ensure the target effect of layoffs, but also avoid the adverse consequences of brain drain caused by wrong layoffs.
The surplus staff of enterprises can be mainly divided into two categories: one is the old, the weak, the sick and the disabled, and the workers with low education and poor skills; The other is the over-allocated unproductive personnel. Enterprises can analyze whether an employee should be laid off from three dimensions:
(1) Past work performance;
(2) the ability to adapt to new jobs;
(3) Work attitude.
When laying off employees, it is not necessary to reduce one business department, but all employees must be laid off. "Some excellent employees may be transferred to other positions. Although they may not be as good as those employees in the short term, they may perform better in the long run. In this case, you might as well leave it.
Step 4: Protect key sectors.
Under normal circumstances, the business backbone and management backbone of each department cannot be laid off, and the list of layoffs should be determined through comprehensive evaluation and calculation, and fully combined with the actual needs of enterprises and the purpose of layoffs. The nature of enterprises is different, and the importance of each department is also different. For example, a market-oriented enterprise, relative to the production department, technology research and development department, logistics support department, sales department is the focus.
Relevant personnel believe that the sales department is often the most direct department to create benefits for enterprises, and sales personnel hold the living resources of many enterprises. When the benefits are not good and the business is in recession, enterprises should protect the enthusiasm of sales staff, strive to stabilize sales channels and reverse the business situation as soon as possible.
Some enterprises determine the list of layoffs by distributing the number of layoffs among production departments, technology research and development departments, sales departments and service functional departments, which is obviously too subjective and rough. In the production department and technology research and development department, there are often some employees who have worked in their posts for a long time, with excellent skills and rich work experience. These people are the wealth and essence of the enterprise. Retaining them is tantamount to retaining the opportunity for the enterprise to come back to life.
Article 41 of the Labor Contract Law: Under any of the following circumstances, if it is necessary to lay off more than 20 employees or less than 20 employees, but it accounts for more than 10% of the total number of employees in the enterprise, the employer shall explain the situation to the trade union or all employees 30 days in advance, listen to the opinions of the trade union or employees, and report to the labor administrative department before laying off employees:
(1) Conforming to the provisions of the Enterprise Bankruptcy Law;
(two) serious difficulties in production and operation;
(three) the enterprise has changed production, major technological innovation or adjustment of business mode, and it still needs to reduce staff after changing the labor contract;
(4) Other major changes have taken place in the objective economic situation on which the labor contract was concluded, which makes it impossible to perform the labor contract.
When reducing personnel, priority should be given to retaining the following personnel:
(1) Concluding a long-term fixed-term labor contract with the unit;
(2) Concluding an open-ended labor contract with the unit;
(3) there are no other employees in the family, and there are elderly people or minors who need to support them.
If the employing unit reduces its staff in accordance with the provisions of the first paragraph of this article and recruits staff again within six months, it shall notify the retrenched staff and give priority to the retrenched staff under the same conditions.
Article 47 Calculation of Economic Compensation of Labor Contract Law The economic compensation shall be paid according to the standard that every year the laborer works in this unit is equivalent to one month's salary. For more than six months but less than one year, it shall be counted as one year; If it is less than six months, economic compensation of half a month's salary shall be paid to the workers.
If the monthly salary of workers is three times higher than the average monthly salary of local workers announced by the people's government of the municipality directly under the central government or the city with districts where the employer is located, the standard for paying economic compensation to workers is three times the average monthly salary of workers, and the longest period for paying economic compensation to workers shall not exceed 12 years.
The monthly salary mentioned in this article refers to the average salary of workers in the twelve months before the dissolution or termination of the labor contract.