For some perspective, the bulk of this is simply illegal in the Netherlands, likely other countries in the EU as well:
- layoff plans must be communicated ahead of time. Minimum 30 days notice, usually much more
- Needs to be negotiated with worker representatives (works council, syndicate if there is one)
- LIFO principle for layoffs, newest employees are let go first. Stack ranking not possible
- Any kind of discrimination is forbidden
- At a minimum, you get 2 months pay + accrued holidays
It's baffling to imagine that you could learn about your job disappearing from one day to the next, and be immediately left out in the cold.
> layoff plans must be communicated ahead of time. Minimum 30 days notice, usually much more
In the United States, employers with more than 100 full-time, non-probationary employees must provide 60 days notice of most planned layoffs[0]
> - LIFO principle for layoffs, newest employees are let go first. Stack ranking not possible
This is functionally equivalent to a stack ranking in that it is a forced-distribution scheme. It is just based on a single factor that is outside of the employee's control. Say what you want about stack ranking, but people do have a large degree of control over their job performance.
> Any kind of discrimination is forbidden
In the United States any kind of job discrimination against members of protected classes[1] in illegal. Even inadvertently disparately impacting[2] members of a protected group is illegal.
0 - https://www.dol.gov/general/topic/termination/plantclosings
1 - https://www.eeoc.gov/employers/small-business/3-who-protecte...
2 - https://www.law.cornell.edu/wex/disparate_impact
> In the United States, employers with more than 100 full-time, non-probationary employees must provide 60 days notice of most planned layoffs[0]
This seemed quite surprising to me, and from reading your reference, I don't think it's nearly as broad a protection as it seems to me like you're stating it. the law seems to apply to companies that you describe, but the types of events that they need to provide notice for don't seem like "most planned layoffs" to me; the employee guide lists the following as potentially being covered:
• A plant closing (see glossary)—where your employer shuts down a facility or operating unit (see glossary) within a single site of employ- ment (see glossary and FAQs) and lays off at least 50 full-time workers;
• A mass layoff (see glossary)—where your employer lays off either between 50 and 499 full-time workers at a single site of employment and that number is 33% of the number of full-time workers at the sin- gle site of employment; or
• A situation where your employer (see glossary) lays off 500 or more full-time workers at a single site of employment
I don't think most layoffs in the US are due to shutting down an entire office, a third of an office with at least 150 people, or 500 people from the same office. I'd expect most layoffs to either be much less concentrated in a single location or not large enough to hit the defined thresholds.
[0] https://www.dol.gov/agencies/eta/layoffs/warn [1] https://www.dol.gov/sites/dolgov/files/ETA/Layoff/pdfs/Worke...
Most states have a WARN act that covers even more. For example, California - https://edd.ca.gov/en/jobs_and_training/Layoff_Services_WARN...
While federal law has:
California law has:> In the United States, employers with more than 100 full-time, non-probationary employees must provide 60 days notice of most planned layoffs[0]
I'm not sure how that works, because I've been at a US company that did layoffs and they suddenly announced the layoff saying the impacted employees would be notified within a day.
Except for France and other European countries, where they announced the beginning of the process meaning the number and list of people let go wasn't decided yet (it would have been illegal).
There's no such thing as a protected group in US law - a protected class means a certain property of someone that employment decisions can't depend on, not a value of that property.
First, I'll say it is pretty common to use the terms interchangeably. I don't think anyone was confused by what I wrote, or that your "clarification" was in any way helpful. See, for example, these legal groups using the term "protected group" in relation to US employment law:
* https://www.osbar.org/public/legalinfo/1095_DiscriminationEm...
* https://pedersenlaw.com/practice-areas/discrimination/
Secondly, I used the phrase "protected group" referring to disparate impact, and here, your assertion (to the extent it has any validity at all) is simply incorrect. The entire idea is to ferret out subtle acts of discrimination that have an outsize impact on a group consisting of members of a protected class, and in the case law you see the phrase "protected group" used explicitly. For example:
0 - https://scholar.google.com/scholar_case?case=637945611431669...Companies in the US have been blatantly discriminating against some classes for years, and now must turn around and blatantly discriminate against other classes now (based on the current ‘anti-DEI’ stance). Racism and sexism in hiring in Europe and Asia has always been a thing, and quite blatant too.
it’s also a bit baffling that someone who’s been at the company longer than myself could have an advantage simply for being born before me, or for applying before me.
Is work performance not a key deciding factor? One could argue that’s absurd.
I don’t think the way it’s done in the U.S. is “right”, but i don’t think what you listed is right either.
Layoffs are for companies to reduce the size of their workforce and lower operating costs, skill distribution remains the same – there are various exceptions to ensure this.
If some employees are underperforming they should already be on their way out. That also is a process protected by law (no at-will employment here), otherwise layoffs would just be an excuse to expedite firings without going through the necessary steps. In short, being employed assumes you can perform at a satisfactory level, which makes sense to me. The flipside is that hiring is a much bigger commitment as people are not disposable.
Voluntary severance packages are usually offered ahead of layoffs, and include compensation based on years worked, so things can balance out a little.
The whole regulations are more about the social impact. Younger employees have an easier time re-arranging their lives and finding new jobs, are less likely to apply for welfare, and still have time left to switch careers, so this benefits everyone.
>Layoffs are for companies to reduce the size of their workforce and lower operating costs, skill distribution remains the same – there are various exceptions to ensure this.
But since this subthread is discussing LIFO layoffs, the problem is that generally the last in is also the lowest paid - not always of course - but if so it means that to hit your operating cost point you might need to reduce more people than you would if you could pick and choose.
Seniority based systems are ‘I got mine, f u’ or ‘politics in action’ depending on how you look at it.
More senior employees have usually figured out how to get leverage on the employer over time.
Non-seniority are usually ‘cheapest is best’, or ‘do what I say, or else’.
Both have pros and cons for everyone involved. There is always some system though, even if it’s emergent.
> LIFO principle for layoffs, newest employees are let go first. Stack ranking not possible
Newer employees often see this as incredibly unfair.
If it’s the rule, everyone knows it. There is no guessing about randomness or hidden variables, and ultimately less favoritism than a line manager coming up with a stack ranking.
Looking at the larger picture, what otherwise tends to happen is that older people get pushed out. Then we have a massive issue of them ending up unemployed because nobody wants to hire them. This is compounded by the retirement age being pushed further and further away.
Because it is unfair. It just tends to benefit people employed today
It's not about being fair to the individual, it's about producing a better outcome for society. In this case, saving money on welfare (that's also in great measured pooled across society, not an individual account).
Parents being able to take sick days to care for their kids, or 50yo being able to take leaves to take care of their dying 80yo parents are also unfair to kids in their 20s just starting out.
The only fair system is a random lottery - which is also the most terrifying for everyone.
Then again, if we did have a random lottery that required all employees (up to and including the CEO) to participate, then perhaps we'd see fewer layoffs...
why would the company want that?
I think you need to look at some of the recent Dutch firing sprees and figure out if that'd actualy respected ;)
Thank you for sharing this important information. What does a company in the Netherlands do when an employee is underperforming? Do they get "PIP'd" like Amazon? Then, eventually let go with some standard severance package?
I can't talk about the Netherlands but if it's like France: the process is very different in the case of layoffs, where you want to reduce the workforce for economical reasons (e.g. shrinking revenues), and firing an individual employee. In the first case employees are not let go on the basis of the performances.
Firing individual employees for performances or because they made a serious offense is a different completely process. Whether they get a severance package or not depends on the reason of the firing.
Yes and no, as it is a difficult process because employer needs to prove it is not their fault that employee is not performing. To begin with you need to collect data over time, so pip is kind of a choice you’d go through to start collecting detailed info, then it might be that a simple course could help solve this if it is a knowledge based issue, then maybe there is another job in the company the employee could switch to, etc. Without any doubt employers do not like the process, it is easier to eliminate positions instead because it is not technically firing.