Employeers Responsibility Towards Employees

[cheech44]

I have sold my restaurant and my employees are asking if itr has been sold. It has been listed since Jan 04 and it was common knowledge that it was for sale..however it has been sold and now just waiting for the lawyers to complete transaction and choose a closing date.The sale has leaked from the municipal office( liquor lis transfer)

My question.. are Employers bound by the same standard of "2 week notice" that employees are with finding a new job??

I do have a business to run and it will be hairy enough when we do tell them..but we have anywhere from 4 to 8 weeks left and some are pressing the issue?? I have given them our company anwser" someone is very interested but nothing is final?? What do my e-gullet friends think??

[Suzanne F]

If you have indeed sold and are just working out the details of timing, tell them that. Yes, some may bolt, but my guess is that the more information you give them, the better their reaction will be. I've been in their situation, sort of (one place announced at almost the last minute that it was closing; another only told me that they were discontinuing brunch service after I had showed up to work my shift and found the place all locked up ). And that last-minute stuff is the worst.

But here's a suggestion: How necessary will it be for them to find new jobs? That is, what are the chances that the new owners might keep them on? Will the change be that drastic that the new folks will want all new people, when it might be easier and cheaper for them to re-train your staff? If you can lobby with the new owners to keep on as many of your employees as possible -- and let your employees know that you are lobbying on their behalf -- it might help to diffuse any bad feelings they have.

[StudentChefEclipse]

Loyalty is always a two-way street, and good feelings need to flow from both directions. I agree with Suzanne that a first order of business might be to discover the intent of the new owners toward the staff you have.

Good luck!

[Joanne212]

I feel for you, this is a very hairy situation. As someone who has been on both sides of the playing field, I understand your dilemma.

As much as things like loyalty and honor are important, there is also the unfortunate reality you have a business to run. The fact that you have the fear of telling your employess the straight deal already speaks volumes about your "relationship" with them.

Your initial "business response" is a good one. The smarter of your emloyees will already have accepted this as a sign it may be time to look for other options. If you divulge everything, your risks run very high.

[flip6577]

In July my boss came to me and announced that an offer had been made for the sale of the business. Although, we are in a different industry than food service it was comforting that he chose to disclose this information to me. Six weeks after he made the announcement the closing took place. During those weeks my former boss was able to get assurances that I would be transferred over to the new owners. (I am the only employee of this organization)

However, if you do decide to announce the sale of the restaurant to your employees I would do some things differently than my former boss. First make a time where the new owners can meet with your staff and introduce themselves. Second, make sure any employees who are up for reviews and subsequent raises receive them before the changeover, or that the buyers are aware and respectful of the situation in the eyes of your employees.

With open communication the transistion should go smoothly. In fact, the employees may even look forward to the ability to grow inside a new organization. On a side note: This did not happen in my case. Today I turned in my 2 weeks notice and am looking forward to my new opportunity in a MUCH LARGER company.

Flip

[irodguy]

The simple fact is an employee can walk out at any time for any reason.

It sounds like you are already in the "rumors" position. In this case I would

1) Tell the employees yes the rumor is true.

2) Tell them that you are planning on having a big party and or bonuses for everybody when the deal is done. When all else fails bribery works

[Hest88]

As someone involved in the communications of various layoffs (though not in the restaurant industry), I can only say that giving them advance notice is a more respectful approach than springing it on them at the last minute--especially if rumours are already flying.

[hillvalley]

Put yourself in your employee's shoes. What would you want to have happen?

[Daniel Rogov]

Hill Valley's advice (above) of placing yourself in the proverbial shoes of your employees is the only valid approach.

The question of whether you formally owe your employees a one-month or two-week notice (depending on how long they have been employed) is merely a legal one but one you should indeed check through your attorney. The more important question - that is to say, the moral issue involved - is one of fairness.

Indeed there is a question of risk involved in either telling or not telling your staff but all moral points of view carry a certain element of risk. That though is what hopefully sets humans in at least a somewhat different category than most other animals.

I am not naive enough to believe that honesty is indeed always the best policy. In this case, however, I cannot help but feel that honesty and fairness walk hand in hand.

[Joanne212]

Yes, absolutely, put yourself in all your employees' shoes. Once you are in their shoes, ask yourself these questions.

"Would I blow off work the next couple of weeks to go on interviews instead?"

"Would I slack off in other ways... show up late... take cigarette breaks... use the phone, etc. because I no longer care about getting fired?"

"Will I start to pilfer products from the dry goods pantry?"

"Will I stop putting bar cash into the register and into my tip bucket instead?"

And if you answer "no" to all of the above, then go ahead and divulge everything.

[Daniel Rogov]

Joanne,

Consider the following before your own skepticism about human nature - If you don't trust your employees, why did you hire them in the first place. Perhaps I'm naive but I continue to believe that there really are some decent people out there.

[chow guy]

I feel for you, this is a very hairy situation. As someone who has been on both sides of the playing field, I understand your dilemma.

As much as things like loyalty and honor are important, there is also the unfortunate reality you have a business to run. The fact that you have the fear of telling your employess the straight deal already speaks volumes about your "relationship" with them.

Your initial "business response" is a good one. The smarter of your emloyees will already have accepted this as a sign it may be time to look for other options. If you divulge everything, your risks run very high.

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I'm here to tell you... It is risky. I was deeply hurt when loyal employees jumped ship in a similar situation (when I told them the straight deal), leaving me up the creek without a paddle. With not enough key help I had to just lock the door.

[Hest88]

It is risky. I was deeply hurt when loyal employees jumped ship in a similar situation (when I told them the straight deal), leaving me up the creek without a paddle. With not enough key help I had to just lock the door.

True, but as far as they were concerned, you were disloyal first by selling your business and depriving them of their livelihood.

[rvanrens]

True, but as far as they were concerned, you were disloyal first by selling your business and depriving them of their livelihood.

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This is one of the most ridiculous things I've ever heard.

I own a small business (not a restaurant). If I were to sell that business, it certainly wouldn't be out of any desire to deprive my employees of thier livelyhood. Is it not better to sell the business, and give the employees a chance to work for a new ownerr, than to close the doors, liquidate the stock, and lay off the employees outright?

Hest, often a business is sold for overriding reasons - financial insolvency, disability on the part of the current owner, etc. I would like to think that I am EXTREMELY loyal to my employees - everything from providing a paid internship for credit to a college students, to showing up for parole hearings for a couple of warehouse guys. But if I was to say, suffer a heart attack, and had to sell the business to pay medical bills, etc, then would that be disloyal? Or would you rather I simply filed Chaper 7 and liquidated the assets to get cash for my interest in the corporation.

Now, admittedly, my employees have not one friggin' clue what it is to run a small business. They will be the first to admit that I work harder than any of them, but how much harder is something that eludes all but a couple. They might perceive that sale as disloyalty to them; I see it as an absolute neccessity, and I would try to ease the transition as much as possible.

My employees are not ENTITLED to a livelyhood here. They work here, and get paid according to how they work and what they do. They don't work well, or steal from me, or fail to show up on a regular basis, or sass customers, or whatever, well, no matter how loyal they are to me personally, they can look for work elsewhere.

[viva]

I work in an industry where I have to deal with layoffs, acquisitions, mergers, etc., and the advice that I give my clients in these scenarios is this:

- Tell your employees what you know when you know it. It's the most direct, honest, and ethical approach.

- If you really need some employees during the transition, pay 'em to stay. It's better to give a few very key employees a "stay" bonus than it is to risk not being able to continue the business.

My two cents from the consulting world...

[Hest88]

My employees are not ENTITLED to a livelyhood here. They work here, and get paid according to how they work and what they do.

Exactly. But it works both ways. Loyalty-schmoyalty, it's still a business relationship and I pity the employee who forgets that. You would never keep open your business purely out of loyalty to your employees so why do some employers assume that employees should make major sacrifices for them over their own career or their families' wellbeing? I've worked at big corporations and small companies, and in the end an employee has to look out for himself. That's just the reality of business.

If you really need some employees during the transition, pay 'em to stay.

Yep, it's all about the retention bonus.

[Shelley G.]

This is one of the most ridiculous things I've ever heard.

I must say I agree. I have had good employees, mediocre employees, and downright destructive employees. Where I live, most employees have an absurd sense of entitlement - labour laws are impressively skewed in favour of the employee. I do not exaggerate when I say that beacause it is so very easy to get UI, few people worry about being fired. I offer good incentives and bonuses to attract good people and offer an extremely humane work environment. That's it. I would certainly tell people if I was closing, but would not exceed 2 weeks.

[Joanne212]

Joanne,

Consider the following before your own skepticism about human nature - If you don't trust your employees, why did you hire them in the first place.  Perhaps I'm naive but I continue to believe that there really are some decent people out there.

←

Daniel,

Who says I don't trust them when I hire them? Unfortunately, placing trust in them doesn't make them honest.

Naivete comes from inexperience.

[Shelley G.]

Joanne,

Consider the following before your own skepticism about human nature - If you don't trust your employees, why did you hire them in the first place.  Perhaps I'm naive but I continue to believe that there really are some decent people out there.

←

Daniel,

Who says I don't trust them when I hire them? Unfortunately, placing trust in them doesn't make them honest.

Naivete comes from inexperience.

←

Joanne,

I agree with you. Every time I hire someone, I hope for the very best. Sometimes it works, sometimes not. I run a very tight ship, with all sorts of deterrents in place to prevent all sorts of dishonest behaviour. I would much rather deter, than catch people in wrong-doing. I placed deterrents because I had a few very unpleasant experiences with people I did indeed trust when I hired them. A great man once said, "Hope for peace, and prepare for war." At this point I agree. I have also had some very trustworthy employees, but the tightness of my operation must stay tight.

[hathor]

Something tells me we all sit around and tell war stories. Yes, honesty. But controlled honesty. This isn't a family, its a business.

No one would hire someone they thought would be dis-honest. But we've all been fooled.

Daniel, you can have faith in your brother (methaphorically speaking), but as a business owner, you need to watch everyone's back. Its just the way it is.

[irodguy]

The bottom line is "once they suspect tell them" In this case his employees suspected he was selling. Once it's out there as a rumor the extra smoke breaks, pilferage etc. will start.

The only way to keep loyalty is to purchase it. You give them bonuses to stay.

[whippy]

i think understanding the laws of your state regarding business entity continuity and employment is the place to start. for both you and your employees. probably, once you've looked over what the legalities of the situation are--you will feel much more comfortable deciding what "personally" to do.

all this sort of info, in my state oregon, comes from one agency.

[Joanne212]

The only way to keep loyalty is to purchase it.  You give them bonuses to stay.

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I must say this notion rather annoys me. As I said, I have been on both sides of the playing field, and the idea I would demand a bonus from my employer to buy my loyalty sickens me as much as the idea of employees stealing from me. It seems to me, a person that needs to be paid extra to do the same job they were being paid to do in the first place probably isn't of very good character either.

A bonus is still no guarantee of integrity.

[Hest88]

It seems to me, a person that needs to be paid extra to do the same job they were being paid to do in the first place probably isn't of very good character either.

A bonus is still no guarantee of integrity.

Wait, we're not talking about employees sabotaging equipment or dusting cigarette ashes into food, we're talking about employees leaving and finding other employment. There's nothing wrong with an employee leaping for a promising job just as there's nothing wrong with an employer selling a business or laying off employees if necessary. What I don't understand, though, is the expectation that "employee loyalty" must extend so far as forgo other opportunities and stick around to help an employer close when he knows at the end of it he'll be on the street.

[Shelley G.]

There's nothing wrong with an employee leaping for a promising job just as there's nothing wrong with an employer selling a business or laying off employees if necessary. What I don't understand, though, is the expectation that "employee loyalty" must extend so far as forgo other opportunities and stick around to help an employer close when he knows at the end of it he'll be on the street.

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Of course! But surely there can be some compromises. Perhaps some extra flexibility in scheduled hours so that employees can go on interviews. In my opinion, a good employer will understand the employee's need to give notice in a proper manner, and in fact appreciate it. I would never hire anyone who left a decent boss in the weeds. I am required by law to give an employee two weeks notice, or wages in lieu of notice after one year. The employee is obligated to give two weeks notice or forfeit two weeks wages if they don't. Lots of employees are not aware that it works both ways - that delightful sense of entitlement again I've had some very good people leave under the best conditions, and I always found a way to express my appreciation for the time they spent with me. An employee who deliberately leaves me up the creek will find that there are consequences for that behaviour. Hasn't happened often.