RUNNING HEAD: LEGAL ISSUES IN REDUCTION OF WORKFORCE
Legal Issues in Reduction of Workforce
University of Phoenix
Introduction
FastServe Inc is a 25 million dollar 350 person-strong organization that focuses on the direct marketing of branded sports apparel. The company decided to shift focus towards the Generation Y sports-crazy segment and opened two online marketing distribution channels, one for boys and one for girls. At that time the company moved ten percent of employees to manage this division. The main attraction for these online channels was the 3-D Drape-N-See mannequins that attracted the Gen-Y segment however because they were difficult to download potential buyers were not making enough transactions to justify the investment of the technology necessary to make this a viable opportunity for the company. The company decided it was necessary to move out of the online distribution and therefore has to downsize.
There are five employees that are currently being reviewed as potential candidates for dismissal. The company must consider all legal ramifications and make the best decision that brings maximum benefits to FastServe Inc. Please see attached table for the summary of each employee and the concepts of employment law that affect their status.
Additional Extenuating Regulatory Circumstances
Some of the employees are under contract employment which means that an agreement was entered into between the employer and the employee at the commencement period of employment that states the exact nature of the business relationship, with regards to what compensation will be given in exchange for work performed (wikipedia.org). Often t ...