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Will 2023 be the year of layoffs?

Employers must take care to comply with all legal requirements. Otherwise, the cost savings may not be as great as expected.

Employer rights

However, employers have the right to control their business, and as long as they stick to legitimate business plans and stay within legal parameters, the implementation of layoffs can proceed relatively smoothly.

During the last major recession, financial service providers cut their workforce threefold in two years. Employees fired are determined by performance reviews, and one employee in particular was told that she no longer has a role in the organization in 2010. The worker filed a complaint about harassment from his boss, but the employer had already fired him and did not investigate.

The worker filed an unfair dismissal complaint, claiming that the restructuring was a lie and that the dismissal was really due to allegations of harassment. He was the only employee in his section to be fired.

However, the adjudicator found restructuring to be a valid reason for the dismissal, and there was evidence that many other employees were dismissed.

Will 2023 be the year of layoffs?

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