Question

In: Operations Management

Frederico owns a local bakery. With the recent Covid 19 pandemic he has had to restrict...

Frederico owns a local bakery. With the recent Covid 19 pandemic he has had to restrict his store hours and limit his employees’ shifts. He is not sure he’ll be able to stay in business if it goes on much longer. He has eight long-time employees and isn’t sure whether he can keep them employed. Frederico wants to know what his options are in relation to keeping on or getting rid of his employees in terms of employment law issues we have studied in this course.

Solutions

Expert Solution

answer-

Fredrico has following options to deal with such situation-

First, Fredirico is allowed to temporary layoff/terminate his employees under the law. Fredrico can fire employees to keep business cost low. When the situation is over then fredrico can hire them back again.

Second, Fredrico have at will employment termination in which Fredrico can terminate an employee at any time for any reason, except an illegal one(race, gender,religion,race etc).

for example- if Fredrico find that employees are not wearing mask and not following social distancing approved by government then fredrico can fire them legally.

Third option if Fredrico find that his business is not profitable and current situation can make him to close business then he can terminate employees legally.

Fourth is based on performance evaluation system if any employee is not upto set standards of performance in the past then he can terminate them legally.


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