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Reduction in force
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Posted on Apr 25 2008
[B]Q: Does an employer need to inform the Department of Labor and the affected employees about a business’ planned reduction of staff.
A:[/B] Yes. According to the new Alien Labor Rules and Regulations, before commencement of a reduction in force, an employer shall give at least 60 days written notice to Department of Labor and at least 30 days notice to each affected employee on the standard form provided by Labor.
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[B]Q: When an alien worker is terminated due to downsizing of staff due to bad economy, when is the effective date of his or her termination?A:[/B] The Regulations state that the effective date of termination is a date at least 30 days after the employees to be laid off have received notice of termination due to reduction in force, downsizing, or closure of the business.
The employment contracts and work permits of laid-off foreign national workers, the Regulations state, shall terminate automatically on the effective date of termination.
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[B]Q: Which type of worker should be first laid off in case of downsizing of force?A:[/B] According to the Regulations, the employer shall lay off more recently arrived foreign national workers before laying off longer-term alien workers in the same job classification except as agreed with Labor.
The employer, however, shall lay off foreign workers before laying off U.S. citizen or permanent resident workers in the same job classification except as agreed with Labor for important business reasons.
The employer should allow representatives from Labor to meet with the employees to be laid off on employer premises during work hours. The purpose of the meeting is to advise the employees of their rights and responsibilities in connection with the lay-off, and to answer their questions.
[I]Disclaimer: Readers should conduct their own research and due diligence and obtain professional legal advice. Saipan Tribune will not be liable for any loss or damage caused by a reader’s reliance on information obtained from this section. Submit questions on labor issues to Saipan Tribune via e-mail at editor@saipantribune.com, or by calling 235-6397, 235-2440, or 235-8747 and leaving a message at Ext. 133 or 135. You may also submit questions in person by writing it down and dropping it off at the Saipan Tribune’s office on the second floor of the CIC Centre on Beach Road, Garapan. [/I]
