It's no secret that we're in a current recession, and thousand of people are losing their jobs. Times are uncertain and it gets even more uncertain when you see some organizations concurrently laying off and hiring, which opens the way for potential lawsuits.

The risk of having a lawsuit can be reduced if employers consider the laid-off employees for open positions and have those open positions distinguished from the jobs included in the layoff. Employers must also keep careful records on the business reasons for the layoff, the selection process, and the difference between jobs that were eliminated and the jobs currently being hired for.

Explain the reasons for the layoffs and the new hirings. For example, you can explain that a product line is not being profitable and that another product lin is more profitable but requires a different skill set from the first. Clearly define the qualifications required.

Companies need to focus on being as transparent as possible, especially in this age of social media where layoffs can be blogged about and tweeted. Having good communication is especially crucial. Stay ahead of rumors and be part of the conversation. Ensure that the communication is sharp. Having a solid communications infrastructure in place makes it easier to do the right thing when bad news strikes.