The Impact of Bench Accounting Layoffs on the Company and its Employees

The Journey of Bench Accounting

Bench Accounting, a leading financial technology (fintech) company based in Vancouver, recently made headlines with its strategic shift to support small businesses in the United States during the COVID-19 pandemic. The company decided to retool its operations and assist US businesses in applying for Paycheck Protection Program (PPP) loans, which proved to be a game-changer.

The decision to pivot its focus was driven by the need to help struggling businesses stay afloat amidst the economic crisis caused by the pandemic. By offering its expertise in financial management and helping businesses access government support, Bench Accounting doubled its business and witnessed a rebound in sales.

The Bench Accounting Layoffs

While the shift to assisting businesses with COVID relief measures led to significant growth for Bench Accounting, it also had consequences for the company's workforce. In order to realign their resources and cater to the new demands, Bench Accounting had to make a difficult decision of letting go of some of its employees.

The layoffs at Bench Accounting were a result of the company's strategic restructuring to focus on the PPP loan assistance program. Although the decision was undoubtedly challenging, it was necessary to ensure the long-term sustainability and success of the company.

The Impact on Employees

Unemployment or job loss can be a distressing experience for anyone, and the Bench Accounting layoffs had a profound impact on the affected employees. However, it's important to note that the company made efforts to mitigate the impact by providing severance pay to the affected individuals.

Severance pay is a compensation package provided by employers to employees who are let go from their jobs. It is an acknowledgment of the employee's contributions and an effort to provide some financial support during their transition period. Bench Accounting, being a responsible employer, ensured that it followed employment law and offered appropriate severance pay to the affected employees.

The Importance of Severance Pay

Severance pay serves as a crucial safety net for employees who lose their jobs. It provides them with the financial means to support themselves during their job search and helps alleviate some of the stress and uncertainty associated with unemployment.

Employers have a legal obligation to consider severance pay, especially in situations where the employee's termination is not due to any fault of their own. It is also a reflection of the company's commitment to its employees and the value it places on their contributions.

Key Considerations for Employers

Employers must understand the laws and regulations surrounding severance pay to ensure compliance and fair treatment of employees. Some important considerations include:

• The laws around severance pay
• Why offer severance pay?
• When to offer severance pay
• How much severance pay to offer
• What to include in a severance policy
• The bottom line on severance pay

By adhering to these guidelines, employers can handle layoffs and severance pay in a fair and responsible manner.

Looking Ahead

The story of Bench Accounting's layoffs and subsequent rebound serves as a testament to the company's adaptability and commitment to supporting businesses in challenging times. Although the layoffs were a difficult decision, they were necessary to ensure the company's continued success in its new direction.

As the global economy recovers from the impact of the pandemic, Bench Accounting is well-positioned to thrive and continue providing valuable financial services to businesses in need.