You work hard to be a great employer, and to create a workplace culture that your team can be proud of. Productivity is great, employees seem happy and collegial, and with careful hiring your turnover is low. You cannot understand then why some of your employees are panic stricken anytime you ask for a simple meeting.
The answer may be layoff trauma, and it may have nothing to do with you.
Even though layoffs and terminations are sometimes inevitable in any workplace, the way that they are carried out can have a serious psychological impact that can last well beyond that current role. In fact it often haunts employees into their next role, and sometimes even beyond that.
Yes, layoff trauma is real, but what can you do to recognize it, handle it, and avoid creating it for years to come? While this blog does not intend or purport to offer any psychological advice, there are definitely best practices in employment law that employers can follow to avoid making a bad situation that much worse.
What does layoff trauma look like?
For decades, the Supreme Court of Canada has acknowledged that next to our family relationships, our relationship with our work is one of the most important connections that we have in our lives. Thus, the sudden loss of that connection, especially when it’s unexpected, can feel much like a painful breakup or even a sudden death of a loved one. According to the Harvard Business Review:
Getting laid off can feel devastatingly personal and hard on your mental health. Along with multiple hits from loss of income, status, daily structure, social support, self-esteem, and identity, there’s also the inherent uncertainty that often comes with mapping out your next career move. To compound the problem, many organizations do not communicate their downsizing plans with the care and respect that employees deserve.
For many employees, navigating through these losses can even be akin to the famous five stages of grief, including denial, anger, depression, and eventually acceptance. Work may have been the crux of their identity, and to lose that suddenly can create a sense of feeling aimless or being untethered.
While younger employees may have been through layoffs before, older employees may be experiencing this phenomenon for the first time after 10, 20, or even 30 years with the same employer. Not only is the loss traumatic, but they are entering into an unfamiliar job market, feeling emotionally unready to put themselves out there among younger and more agile competition.
Thankfully they’ve now found you, who works hard to be an upstanding employer, but that does not mean that that trauma wears away instantly. Much like being the new partner in someone’s relationship after a sudden loss of their previous partner, that employee may be hesitant and guarded for some time still to come as they wait for the other proverbial shoe to drop.
While these employees may be hardworking and diligent, if you look closely you’ll see that they may still be skittish, especially around meetings. They may be unusually hesitant when it comes to any changes in the company or in leadership, or weary of surprises. Again, this is not a sign that you have done something wrong; it may simply be mirroring a previous pattern which led to their past layoff(s).
What The Law Says
In Ontario, most employees can be terminated from their employment at practically any time for practically any reason, so long as the reason is not discriminatory and they are compensated properly according to the law. However, the way in which these terminations are conducted can also make a difference, and may leave an employer who behaves badly on the hook for greater financial penalties.
Generally speaking, the law expects employers to act in good faith. That means giving new employees a fair opportunity to succeed (even if they are on an early probationary trial), and offering them the ability to correct any bad behaviours. It also means treating all employees fairly, and not offering preferential treatment to some employees or snubbing others. It requires employers to effectively set employees up for success.
It is also a very high standard to terminate an employee for just cause, and dismiss them with no payment whatsoever. This means that in the case of performance issues, employees would generally receive at least some sort of warning, or be subjected to graduated discipline such as a performance improvement plan. This does not mean that an employee’s job is permanently secure, but it may lessen the element of surprise.
When employers do terminate an employee in bad faith, whether through mistreatment or in other grossly unpleasant situations, employees may file a claim not only for wrongful dismissal, but for additional damages for being terminated in bad faith. These are not awarded often, but courts have been known to award employees additional compensation when they have been treated in a grossly unfair or inappropriate manner.
What Can Employers Do?
While a great employer may go out of their way to avoid creating layoff trauma, they may still be dealing with its after-effects, even in some of their best employees. Workplace mental health is an increasingly growing topic, and one that employers need to take seriously. Employers are now moving beyond just introductory conversations, and focusing on creating a culture of mental wellness.
Part of mental wellness is recognizing when your employees are really struggling, and when a serious depression or anxiety disorder may be present. Employers have a legal duty to accommodate mental health disabilities, and this includes asking an employee if they are okay, or encouraging them to seek resources from outside professionals. This of course does not mean that an employee with layoff trauma can never have their employment terminated.
Rather, it means being conscientious of the mental health climate of your workplace, and accommodating employees who may be struggling. Announce any changes to the workplace clearly and considerately, and ensure that HR and management are equipped as a forum to address any questions or concerns. If an employee is struggling with their mental health, it is imperative that they have a safe person with whom they can address those concerns.
Lastly, if you do need to conduct layoffs or terminations, consult with your employment lawyer first. They can help you navigate the process, including the manner in which the news should be delivered, and any follow-up steps that should be taken. This does not mean that a termination will automatically go smoothly, but it may lessen the chances of an employee being negatively impacted in the long-term.
We routinely assist not only with drafting termination documents, but also with termination strategy and planning. Our employment lawyers have represented both employers and employees in all manner of terminations, and we’re happy to guide employers on how to do things right. Contact us today to set up a consultation.