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Legal Issues in Reduction of Workforce
FastServe, Inc. is a $25 million company that employs 350 people dedicated to marketing name brand sports apparel. The company started two online distribution sites (www.fastserve4boys.com and www.fastserve4girls.com) exclusively for America’s Generation Y sports fanatics. Ten percent of the company’s workforce was positioned to manage the online distributions. The site caused problems for the company due technical mishaps. Even though the 3-D features attracted the Generation Y market, they had trouble downloading in order to make potential purchases.
Eventually, FastServe decided cancel the online distribution service due to the lack of sales. The shutdown of the site means that there will be a downsizing in the company. Several employees will be laid off and the others will have new job descriptions. The selection of those employees that will remain with the company is based on past performance and skill levels. The five employees that were considered for dismissal are Carl Haimes, Brian Carter, Sarah Boyd, Nora Manson, and Jenny Mills.
The final layoff decision will be based on the current employment laws. Employers have the right to terminate employees as long as the laws and regulations are followed. In fastServe’s case, there are mitigation circumstances that must be considered before they can determine who will be laid off. Four employees are under contract and in order to terminate their contracts, the company must come to agreement with the affected employee to avoid being sued for wrongful termination.
These agreements must be determined by the terms of each contract. Even though the simulation doesn’t provide any details of employees ...