The Legal Side Of Firings And Layoffs

Does a written employment contract limit a company's right to fire an employee?

If an employer has a written contract, then that employer is going to be bound by the terms of that contract, to the extent that those terms are legally enforceable. It can limit an employer's right to terminate an employee. For example, often employment contracts will have a provision that states an employer cannot terminate an employee, but for good cause.

What should a company consider before laying off workers?

Before laying off workers, a company should consider several factors. First, and most importantly, is whether or not there truly is a business need for laying off the workers. Second of all, you want to look at employment policies that employers may have, and make sure that you're not in violation of your own company's policies. Lastly, what's very important in laying off workers is that you do not do so in a discriminatory manner - you do not select employees for layoff based on a protected characteristic.

Can older employees legally be forced to retire?

The Mandatory Retirement Act has been banned for some time now, and so an employer cannot force an employee to retire. That would be protected by the Age, Discrimination, and Employment Act, which states that you cannot disciminate against an employee based on their age if they are at least 40 years of age or older.