In case you need to reduce the number of staff under MicroSourcing, the redundancy route is taken.
Redundancy is one of the authorized causes of termination. It exists where the services of an employee are in excess of what is reasonably demanded by the actual requirements of the enterprise. A position is redundant where it is superfluous, and superfluity of a position or positions may be the outcome of a number of factors, such as over hiring of workers, decrease of volume in business, or dropping a particular product line or service activity previously manufactured or undertaken by the enterprise.
If not all employees assigned to the account will be terminated, the grounds for dismissal must be established. The statutory basis for redundancy is Last In-First Out (LIFO).
Reach out to your Account Manager for this, complete and discuss the redundancy questionnaire with Operations.
In redundancy, the employees are entitled to:
- 30-day notice prior to the effective date of redundancy.
- Severance pay that is equivalent to a one-month salary for every year of service, a fraction of six months is considered one year.
- Cash conversion of a maximum of five (5) paid time offs (PTOs)/leave credits for employees who had been with the company for at least one year.
The following also needs to be established:
- Last working day of the staff
- Will the staff be required to report for work during the 30-day notice period or not?
Please note that if the employee is not required to report for work during the 30-day notice – the said notice period will still be paid. In case they are required to report for work, absences and tardiness will still be deducted from their salary.