Employment Law Encounters

Legal Issues in Reduction of Workforce

FastServe, Inc. is a company involved in the direct marketing of branded sports apparel. They opened up two online marketing and distribution channels. After some time they decided to move out of online distribution for economic reasons (University of Phoenix, 2002). The division had five employees and three employees will be released after evaluation of their human resources records and the liabilities related to their layoff.

FastServe does not have to pay them a severance package because their layoff has a justified cause, according to the Puerto Rican Law. According to Ley de indemnización por despido sin justa causa. Ley Núm. 80 de 30 de mayo de 1976, según enmendada;

Se entenderá por justa causa para el despido de un empleado de un establecimiento:

(f) Reducciones en empleo que se hacen necesarias debido a una reducción en el volumen de producción, ventas o ganancias, anticipadas o que prevalecen al ocurrir el despido (Art. 2. - Justa causa para el despido. (29 L.P.R.A. sec. 185b)).

Sarah Boyd will be released because the tasks done by her at this moment will be automated. She could claim age discrimination, under Ley Núm. 100 Aprobada el 30 de junio de 1959, según enmendada, Ley contra el discrimen en el empleo del 1959. To diminish the litigation risk, FastServe should pay her a severance according to Ley de indemnización por despido sin justa causa. Ley Núm. 80 de 30 de mayo de 1976, según enmendada Art. 1. Importe; años de servicio. (29 L.P.R.A. sec. 185a).

Brian Carter will be released because his skills will also be redundant. He has Carpal Tunnel Syndrome and he could claim discrimination for his condition. This kind of discrimination will be protected under the Americans with Disability Act (ADA).

Jenny Mills will be released because the company needs to reduce costs and her skills are non-critical. She is pregnant and had been taking longer periods of breaks. This cannot be the reason for...