COVID-19 and Workforce Reorganizations Part Two: Global Reductions in Force

COVID-19 and Workforce Reorganizations Part Two: Global Reductions in Force

November 24, 2020, Covington Alert

As large companies across the globe continue to navigate the ongoing COVID-19 pandemic, many are considering workforce reorganizations as a way to reduce costs in light of geopolitical and economic uncertainties, flagging demand, and a rapidly changing outlook for recovery.

Workforce reorganizations can take many forms; however, many companies will consider global involuntary separation programs or reductions in force (“RIFs”) / redundancies if initial job retention efforts or cost-saving measures such as voluntary separation programs have not proved sufficient to protect or re-size the business for anticipated future needs.

This alert highlights critical distinctions between international and U.S. RIF requirements and addresses:

1. Employee Consultation, Consents, and Timing Issues
2. Termination Rights
3. Severance Payments
4. Employee Benefits
5. Release Agreements and Waivers
6. Communications and Disclosures