Plant Closing Law

Posted in Human Resource Terms, Total Reads: 479

Definition: Plant Closing Law

A Plant Closing Law is a law which requires the employers to provide a notice to the employees before closing the plant. An example of this law is the Worker Adjustment and Retraining Notification Act (WARN).


This Act offers protection to workers, their families, and communities by requiring employers with 100 or more employees to provide a notice period of 60 days before closing the plant which affects at least 50 employees at a single site of employment. Generally, employees with less than 6 months of experience in the last 12 months and employees who work, on an average, less than 20 hours a week are excluded from the total employee count.

However, this Act makes exceptions in certain cases like unforeseeable business circumstances, faltering companies, and natural disasters. The notice period of 60 days gives employees time to search for new jobs and also to join skill training and retraining programs which will help them compete in the job market. Regular federal, state, and local government entities which provide public services are not covered under this Act. Managers and supervisors, hourly and salaried workers, employees’ representatives, local chief elected official, and the state dislocated workers unit are all entitled to notice under this Act.


Hence, this concludes the definition of Plant Closing Law along with its overview.


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