what must an employer do to ensure they comply with the law in texas to lay off an employee due to the company's financial situation and not having the funds to continue to operate/ trade?
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When a person is laid off is the comapny allowed to fill the position of the person that has just been laid off by either a newly hired employee or by another person already employed by the company?
Both Chapter 21 of the Texas Labor Code and the federal discrimination laws prohibit discriminatory selection for needed layoffs (based on age, gender, national origin, disability, FMLA leave), and Chapter 451 of the Texas Labor Code prohibits discrimination against those who've filed and are out on workers' comp, and there is a federal law governing mass layoffs/plant closings (called the WARN Act), but Texas is an at-will state and there is no requirement for severance, or specific criteria required for layoffs. Generally, as a "best practice", employers should set up some sort of criteria prior to selecting individuals for layoffs, either performance or seniority-based, as this gives them a better defense if discrimination on one of the protected grounds above is later claimed, but this is not required under any statute. Laid off employees are entitled to unemployment compensation benefits through the TWC, and most employers will also give some kind of severance pay.
