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BENEFITS OF DOCUMENT
DOCUMENT DESCRIPTION
SOP Mass Termination of Employment (Examples & Templates)
Contents :
1. Policy of Mass Termination of Employment
2. Procedure of Mass Termination of Employment
3. Flowchart of SOP Mass Termination of Employment
4. Termination Letter Form
The purpose of this procedure is to explain the process of mass termination professionally and in accordance with the provisions of the relevant laws, while keeping the company's financial interests and employee rights in mind.
The issuance of Mass Termination Letters is carried out in accordance with company regulations and the Manpower Law. Mass terminations are done while keeping the company's financial interests and employee rights in mind.
As a response to the COVID-19 pandemic, many employers have been forced to adapt to new working conditions and restructure their businesses as needed. In some cases, employers have been forced to downsize by reducing their number of employees. If an employer terminates fifty or more employees in their establishment within a four-week period, it is identified as a mass termination in the Employment Standards Act.
The fifty or more employees who are terminated can be characterized as a mass termination if at least fifty of these employees have been terminated within the same establishment. This means that these employees do not need to work at the same location, but within the same district.
This type of termination does not qualify as mass termination if 10% or less of the employees being dismissed have worked for at least 3 months. Meaning, at least 90% of the terminated employees must have worked for more than 3 months for it to be identified as a mass termination. Further, if the terminations were a response to the business closing, they also cannot qualify as a mass termination.
Upon the mass termination, the employer must provide a Notice of Termination to the Director of Employment Standards that describes what workplaces have been impacted by these terminations, how many have been terminated, why the employees have been terminated, the termination date, and necessary contact information.
The amount of notice the employer must provide is dependent on the number of employees being terminated. For example, if the employer is terminating 50 to 199 employees, they are required to provide all affected employees 8 weeks' notice.
The rules regarding how to treat employees while on their notice period is the same as any other termination outlined by the ESA. Employers are still required to provide regular compensation that has been provided throughout their employment relationship.
Thank you,
Regards,
UJ Consulting
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Source: Best Practices in Human Resources, Employee Termination Word: SOP Mass Termination of Employment (Examples & Templates) Word (DOCX) Document, UJ Consulting
ABOUT THE AUTHOR: UJ CONSULTING
UJ Consulting
Untung Juanto ST., MM. Founder of UJ Consulting. He is professionally experienced business and management consultant in several local and multinational companies.
[read more]
He has an experience in managing an effective and efficient company with various approach methods adapted to different industries because He had a career from the lower management level as Supervisor before finally being at the top management level. His Top Management experience started from the position of General Manager, VP Operation, HR Director and Business Development Director
He completed his undergraduate education majoring in Architecture at Diponegoro University, Semarang, Central Java, Indonesia. After that, He continued to Master of Management level majoring in Human Resource Management with cum laude predicate with a GPA of 3.94 at Mercubuana University, Jakarta, Indonesia.
His last work experience as Deputy President Director at Hutahaean Group in charge of 14 business units engaged in various industries including CPO Production, Oil Palm Plantation, Cassava Plantation, Tapioca flour production, 4 and 5 star hotels, waterparks, golf courses and housing with a total of employees more than 3,000 employees.
His biggest achievement was in 2021 when He served as Deputy President Director at Hutahaean Group Indonesia by increasing the company's revenue from IDR 700 billion to IDR 1.1 trillion (y/y) and increasing the profit margin by more than 20%. Doing a turn around on business units that have lost in the last 5 years become profits. In addition, He have also succeeded in creating an efficient and effective management system by redesigning the Business Process Management (BPM), reviewing Standard Operating Procedures (SOP) and Work Instructions and compiling the appropriate Key Performance Indicator Management (KPIM) to increase employee productivity.
He is currently active as a part-time business and management consultant (online) at Enquire Corp. and Flevy Corp. In addition, He also teach part-time at several universities for courses in strategic management, human resource management, project management, entrepreneurship and business.
UJ Consulting has published 171 additional documents on Flevy.
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