Closure of Business Essay Example | Topics and Well Written Essays - 1500 words

Closure of Business - Essay Example The promotion of the welfare of the working class is a recognized policy but an employee’s tenure is not a perpetual right intended to destroy or oppress the employer. The employer, therefore, has the prerogative to exercise in good faith the right to close the operation of the business, either totally or partially. The employer cannot be compelled to continue to operate its business but must nevertheless comply with legal processes before it can implement the cessation of its business or reduction of its operations. To manifest good faith, the employer must define the criteria in an objective and fair manner on who will be retained and who will be let go through the redundancy plan and thereafter, notify the employees affected in writing. It is not enough though to notify the employees, the issue must be explained to them individually. It is further required for the employer to consult and listen to the suggestions of the employees to forestall termination. And, if other alte rnatives or options are available then the same must be explored as opposed to the implementation of redundancy or termination phase.There are two options presented by Sally thus it shall be discussed separately.The first scenario is to close the shop completely due to losses. The lack of business transaction validates the severance of employment. Since it is within the discretion of Sally to cease business operation, she cannot be compelled to continue operating at a loss due to misplacing sympathy to the employees.... It is not enough though to notify the employees, the issue must be explained to them individually. It is further required for the employer to consult and listen to the suggestions of the employees to forestall termination. And, if other alternatives or options are available then the same must be explored as opposed to the implementation of redundancy or termination phase. There are two options presented by Sally thus it shall be discussed separately. The first scenario is to close the shop completely due to losses. The lack of business transaction validates the severance of employment. Since it is within the discretion of Sally to cease business operation, she cannot be compelled to continue operating at a loss due to misplace sympathy to the employees. However, she must pay redundancy payment to the dismissed employees who have rendered continuous service at least two years reckoned at the date of the dismissal. If an alternative work offer is made to the employee that is of similar conditions, pay, status and other benefits to the employee’s present position, he is free to accept or reject the offer. However, if it is shown that the offer is unreasonably rejected the employees can no longer demand redundancy pay and worse consequence of such refusal shall exempt the employer from paying the same. Applying the foregoing standard, Greg shall not be entitled to redundancy payment as he can be re-assigned to Sally’s other business offices pursuant to his contract. If the offer to be re-assigned is refused by Greg, he cannot make a claim for redundancy payment. Nevertheless, Greg can fight the re-assignment on ground that it is a diminution of his present status not to mention that his salary is substantially reduced. In all