CHAPTER 13Corporate (“No Fault”) Actions

No fault actions are often the most difficult concept to explain to employees. After all, they’re no one’s fault. They’re simply the result of doing business in an economy that sometimes appears to be based on survival of the fittest. Layoffs, department closures, and plant relocations are simply the fallout of global competition in a changing business world.

In fact, it’s arguably easier to terminate someone for cause than to lay them off. Why? Because with a termination for cause, the employee could at least see it coming and arguably had some ability to avoid the outcome. That’s not the case with layoffs, where positions are eliminated, and the people occupying those positions are then let go, often ...

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