ForumsHome

Due to the recent budget cuts, I'm forced to layoff one of my two employees. They are both excellent workers and I don't want to let anyone go, but I can't afford to keep them both. The one employee has been with me for 5 months. She signed a one year contract to work for me. We talked about having her work for me on a contract basis. This way I only pay her for the work she does and she is able to stay and work for me, which is what she wants. I gave her the contract to sign and have asked for it several times over the course of two weeks. I gave her a deadline of signing the contract. The deadline has passed and she has not signed it. I'm not sure what to do at this point. I know I will have to lay her off soon because I have no money left to pay her. Are there any legal issues that I am against if I do lay her off? What do I need to do before, during and after laying her off? I'm in the process of getting a small business loan to keep her, but if it doesn't go through I want to be prepared and be able to pull the trigger.

Thank you.