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  • Essay / Legal Issues Related to Reducing Labor Simulation:...

    Legal Issues Related to Reducing Labor Simulation: FastServe, Inc.FastServe, Inc. is a marketing of sports clothing with a turnover of 25 million dollars and a workforce of 350 employees. . In order to target the population interested in sports activities, also known as millennials, FastServe has opened online marketing and distribution channels. One of these channels is for boys and the other for girls. The company transferred 10% of its workforce to the online distribution department. Nonetheless, issues on the website regarding the drape-n-see 3D mannequin have made the downloading process very difficult for customers. As a result, customers are unable to order products due to this issue. The lack of online sales led the company to downsize. FastServe, Inc needs to make planned decisions regarding the company's downsizing process. Management should consider possible discrimination claims the company may face from its terminated employees. They must base their decisions not only on individuals' skills or contributions to the company, but also on how those individuals can be terminated in an ethical and legal manner. Obviously, downsizing the company is inevitable after the decision to exit the online distribution market. However, FastServe management still faces the dilemma of who will be fit to perform new tasks in line with the company's new direction and who will need to leave and seek other opportunities outside the company. This article discusses the issues related to the legal aspects regarding downsizing at FastServe, Inc. It also provides an overview of the legal issues that the company may face and suggestions regarding the termination of employees by considering several aspects; such as the best interests of the company and labor law. Declining profits due to lack of online sales forced the company to cut costs and change its business focus. Taking into account the legal implications as well as the skills and performance of the candidates, the company decided to lay off three out of five employees. Two of these employees have contractual status. Their status can lead to problems related to the implied contract. The company will review this issue and decisions will be based on the state in which the contract was signed and the nature of the terms of the agreement. Brian CarterBrian is the sole manager responsible for programming the 3D “drape-n-see” mannequins for the company's online marketplace.