APPENDIX A - SAMPLE: Letter to Affected Employees

(On Company Letterhead)

Date

Employee Name
Address
City/State/Zip Code

Dear ________________________:

As has been frequently highlighted in the news media during recent months, our country's economy is in recessionary times. Unfortunately, our contracts for this year have already been impacted by this downward cycle. Accordingly, during recent weeks we have been evaluating our staffing as related to our current and expected volume of sales. As a result of this evaluation, we have determined that our current workforce must be reduced by ____ percent. While regretful, this decision is necessary in order to bring expenses in line with our current and expected volume of business.

As you have been advised by _____________________, your position is part of this reduction in force, effective _______________________. We understand that the direct impact of this decision on you is difficult, and hope that you understand that this decision is fundamental to the company's future.

To assist you with your search for a new position, we will continue payment of your salary through ___________________. This will be paid through normal payroll, and is subject to payroll taxes.

Accrual of vacation time will cease as of today. Any unused accrued vacation will be paid in your final paycheck on _________________.

You will be covered by our group insurance plans through midnight ____________________. Under COBRA you are eligible to continue your medical and dental insurance coverage. An information sheet including monthly premiums, and a COBRA enrollment sheet are enclosed in this packet.

If you are eligible for a distribution from our Pension, Profit Sharing, and/or 401 (K) Plans, an information sheet and distribution form are also enclosed in this packet.

Your W-2 form will be sent to you by the Payroll Department by January 31st of next year. Please be certain to notify the Payroll Department, in writing, if you move before that date, to ensure that you receive your W-2 in a timely manner.

The enclosed "General Information for Employees Affected by RIF" summarizes pertinent information about COBRA, 401(K), Pension, and Profit Sharing Plan distributions, W-2 forms and Unemployment Insurance Benefits.

Also enclosed is a copy of a Job Search Guide. I hope that you find this helpful as you prepare for your job search. _____________________ will be available to assist you with your job search efforts in a variety of ways. I encourage you to call them if you feel that they can be helpful to you.

To further assist you with your job search, the local One Stop Center will be providing outplacement services, such as filing for unemployment compensation benefits, and reemployment services to assist you in finding new employment. I hope that you will take advantage of these services.

Additionally, enclosed is a reference letter which you may use in your search for a new position, as well as a copy of your resume/application which may be helpful when updating your resume.

Please feel free to contact me if I can be of any assistance to you during this transitional period. I wish you the best in your future endeavors.

Sincerely,

Name
Title

Enclosures