GULSHAN MPOB

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TERM PAPER

OFMANAGEMENT PRACTISES

AND

ORGANISATIONAL BEHAVIOR

Topic: RETRENCHMENT

Submitted by:- Submitted to:-

Gulshan Kumar Maralyn KoulRegd. No. 10904469Roll No. RR1904A01

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MEANING OF RETRENCHMENT

Retrenchment is something similar to downsizing.

When an organization passes through retrenchment, it decreases money which is going out or

spending or directs again focus in an endeavour to become more of financially solvent.

Many organizations that are being forced by stockholders or had dropping profits accounts

may expedient to retrenchment to ashore up their operations and create them more beneficial.

Although retrenchment is most frequently used in organization allover the world to refer totemporary discharge of workers, it can also label the more usual tactical manoeuvre of

cutting back.

In other way in which an organization may use retrenchment is to downsize in from the

market which is emerge not profitable and establish the organization in a more beneficial

market.

If one market has become no longer for use due to adaptation of modern habits or

technology, then a organization may take decision to change with the period to remain

beneficial.

Governments may also use retrenchment as a means to become more financially established.

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In the capitalist countries, retrenchment is effected by reducing taxes in the expectation of

increasing more money into the economy.

This tactical maneuver is all times soundly discussed right through all levels of government.

When used by governments, retrenchment may also relate to a cutting cost by making jobs no

longer used, shutting government offices and reducing governments events and services.

But, this is not a famous example of retrenchment, because when expenses are cut in one

area, politicians inclined to direct again them to other areas.

HOW TO RETRENCH?

According to Human Resources Management theory, Retrenchment can be divided into the

three parts:-

Alternative to Retrenchment

Retrenchment Process

Post Retrenchment Process

Alternative to Retrenchment

When there is more manpower than it is required in the organization, then the organization

considers the following alternatives, and to consider retrenchment as the last expedient:

Innate Wastage

Control on recruitment

Innate wastage comprises usual and ill-health retirements, death in the service period,

resigning from the job and enforcing discipline dismissal.

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A combined set of innate wastage and control on recruitment is the most benevolent form of

workforce reduction.

Control on overtime

This technique is only applicable in organization where overtime is a pattern. Essential

savings or overtime payment may be useful for an organization to save jobs.

Wage reductions

In Singapore in 2003 wage reduction method was practiced by the hotel industry. In this year

SARS caused the hotel holding rate to hit rock underneath part.

As the circumstance was regarded as likely to be lasting for a limited period of time, hotel

managements took an organization wide wage reduction approach.

Abortion the use of temporary and informal staff

Redeployment of extra manpower

When an organization faces extra manpower, supply of

Staff by agency, temporary and informal staff, and overseas workers under short term

agreement should be ended.

After that, it can begin a redeployment practice of extra manpower to occupy posts cease to

occupy by temporary and informal staff.

Retiring measure

Intentional redundancy scheme

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Retirement and early retiring measures should be used with other methods of manforce

reduction, such as intentional redundancy scheme.

When the redundancy compensating is calculated depending on length of service and last

drawn salary, it may persuade employees to take early retirement.

Retrenchment Process

To every thing there is a season, and a time to every purpose under the heaven. So says the

Bible in the book of Ecclesiastes 3:1.

A time will occur when an organization expressing annoyance takes decision that

retrenchment is the only means of solving a problem to keep it out of difficulty.

Retrenchment is possibly one of the most distressing events in the record of any organization

that ever experienced it.

In spite of the fact that there in reality, no Standard Operating way of performing a task on

Retrenchment, good human resources practices should include the following:

Legal thing implied

According to section 45 of Employment Act No person employed for wages, who has been

in uninterrupted service with an employer for less than three years shall be given a title to

any retrenchment advantage on the termination of his service by the employer on the basis of

superfluous or by reason of organizing differently the employers profession, business, trade

or work.

The Court in the suit at law of Bethlehem Singapore Ltd v Ler Hock Seng & Ors 1 SLR 1

specify Section 45 can not be interpreted to signify that in the suit at law of employees with

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more than three years uninterrupted service with an employer there is legal obligation on the

employer to pay retrenchment advantage.

Thus, all retrenchment being compensated is on not from obligation basis.

Process of consulting with employee and/ or union

Process of consulting with particular employee, employee being represented or union is an

amiss of good employment procedure.

Process of consulting should start at the earliest favourable chance i.e. as soon as

organizations plan is likely to consequence in retrenchment.

While the organization is not needed by law to subject to union contract, it is best to be open

and comprise union in the course of retrenchment planning.

Multiple selection principle

LIFO (last in, first out) is usually regarded favourable to be an equitable procedure, yet it is

not best.

LIFO system intentionally disregards the ability of junior employees.

Multiple selection principle that comprises LIFO, ability, behaviour, attitude, being present,

experience, and capacity to produce may be an equitable method.

The use of extra allowance paid in special cases to be given to each factor and how

employees are to be estimated or rated was advocated by Flower in year 1999.

Compensation

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In Singapore, retrenchment benefit is not from obligation, unless it is on the condition for by:

An express condition in the agreement of employment.

An implied condition in the agreement of employment.

A condition in a joint agreement applicable to members.

Employee help

Employee help in the visible aspect of pre-retrenchment courses, use of job centers, meeting

other employers and publicising the availability of the displaced employees are esteem highly

by the employees.

Examples of pre-retrenchment courses are:

Information given on making job applications and escorting interviews tactical manoeuvre.

Information about employment and training systematic plans

Taxable status of retrenchment and other favourable factor

Information on management of debt

Information about choice for the investment of retrenchment on compensation paid down at

once.

Relation with Public

Retrenchment is every time capable news item. Public beliefs to a great degree are shaped by

media.

Accordingly a well-managed retrenchment exercise can arouse the most refusal publicity

when the companies refuse to take notice of the public interest and refuses co-operation with

the media.

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The media should know the facts of the threatening retrenchment after the news has been

released to the trade unions and employees.

For employees to listen about potential retrenchment for the first time by reading the

newspaper is a catastrophe start to the retrenchment exercise.

Post Retrenchment Process

Time to shatter down or a time to develop

Admittedly, the period after retrenchment is a time to develop. This is a period when an

organization shows it cares for both the Survive and the retrenched employee.

Care for Survive

Survive are in need of encouraging and consulting. Survive may feel shocking; arouse bitter

feeling towards management, afraid and guilty about still having a job while fellow worker

are being retrenched. Morale of the survive generally rely on how the company the

retrenched employee.

Caution for Retrenched employee

Retrenched employee lose greater than merely a job, they lose good opinion and sense of

financial security. Even the boldest employees require to advice and support in willing to

receive the realities of the circumstances.

METHODOLOGY

DESIGN

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A retrospective view design was being used. In this design, participators were asked to state

the characteristics about retrenchment according to their perception, estimates individual and

organizational execution and quality of work life earlier and later than retrenchment.

Sample

Purposeful sampling was used to get names of ministers that had put into effect

retrenchment.

Ministry of Public Service gave names of 49 organizations and ministers that had put into

effect the practice by 1992.

The selected organizations and ministers were estimated to make sure that they had sufficient

participator with regard to sex balance.

After that, a stratified random sample of same number of male and female employees was

chosen from the list of employees receiving regular pay.

The sample assemble consist of 247 participators from the ministries of Public Service, StateGovernment, Education, Intrinsic Affairs, and Sex and Community Development.

The study was tried in Kampala district.

This is because Kampala had a proportionately higher percentage of organizations that had

put into effect retrenchment.

INSTRUMENTS

A formulated series of questions was used to collect data since all defendants could read and

write in a satisfactory way.

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The formulated series of questions requested execution ratings on 25 key distinct execution

indicators that showed individual and organizational level execution and had dependability of

0.70.

Participators showed the consequences of retrenchment on each factor by stating whether the

indicator had: much better, reduced, no plan, no alteration being scored from 1 to 4 in the

order mentioned.

In some circumstances, this reply format was opposite to stop the development of a feeling

set.

The next subdivision estimates the understanding about retrenchment, factor affecting

particulars execution and how execution could be making better after retrenchment.

The following execution subdivision assessed prospects about quality of work life indexed by

fixed regular wages package, ability to meet financial duty after retrenchment, feeling of job

unsafe, its foretell and impact, and occupational way of thinking.

Content

HR Problems at Jet Airways: Course of Masonry in

wall with Riotous Times in the Indian Aviation Industry

Abstract:

The case is about the retrenchment dramatic event that spread out in one of Indias chief

aviation companies, Jet Airways (India) Limited (Jet), in late 2008.

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After displaying the doorway to greater than 1000 employees in a bid to make simple its

operational research, Jet was faced with huge critical remark and resistance by different

organizations and political party.

Jets chairman Naresh Goyal restore the employees a day afterward saying that he was not

conscious of these dismissal.

The Indian aviation industry was passing through a hard stage and specialist experience that

it was in the curiosity of the company to retrench employees to stay in the competition.

Specialist to a great extent mat that Goyal had surrender under force exerted from external

groups whereas remaining mat that all may not be fine with the organizational communiqumethod at the Jet.

We have formed sky-scraping spirits for our people. Our employees have belief

in the company. Their belief its their company. Theres a sentiment amongst

employees that if the company create money, its their money and if the

company suffer loss of money, thats their loss."

Chairman, of Jet Airways (India) Limited, Goyal on July 2007 said.

"Although the ineffective handling of the Jet Airways material for making sacks

and restore to former privileges of 1,900 employees was an HR and PR

catastrophe, the comprehensive implicating of what occurred are also worth

taking into consideration. It is not merely that the chairman of Indias most

prosperous airline becomes the shooting range of jokes, it is also a doubtful of

what he knew, when he knew it, and who did the mismanaging."

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Columnist -Anjuli Bargava, Business Standard on October, 2008 had

written that:-

"The materials for making sacks were entirely not legal. There was no

intimation nor was governments consent taken to dismissal 800 employees

from employment. Possibly they understand clearly their foolishness and

decided to acquire these employees back. The matter would have landed in the

court else."

Labour lawyer, Anand Pujari SI Joshi & Co., on October 2008

Problem

Examine in detail the HR doubtful matter faced by Jet Airways in 2008.

- Talk about different general notion connected to being hired, dismissal,

and compensating management.

- Perceiving the significance behind Jets formal judgments to put down

employees and the motive behind its later choice to take back the employees

who are dismissed.

- Recognize the pompous of communication in an organization and examine in detail

whether there were any means of evading a rule etc. without infringing it in Jets

organizational information network.

- Recognize the logical basis after the pay cuts started at the company.

- Recognize how environmental indeterminate could affect a companys HR policies.

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Introducing :

In October 2008, Jet Airways Limited , one of leading domestic airlines of India , definite to

suspend more than 1,000 employees to make more efficient its operations.

The retrenchment was the second part of its adornment operation.

The first part, which took position a day before, saw the airline personating the door to 850

cabin squad members.

The second part of retrenchment comprise employees from all operations - cabin squad,

pilots, ground staff, airport services personnel, and employees from managing departments.

The abrupt choice not only took the employees by shock but also caused fright in the Indian

aviation sector.

Among great uproar and antagonism by different organizations and political parties, Naresh

Goyal, chairman of Jet, restore the employees a day among great touching drama.

He was quoted as saying he had been shocking by the retrenchments of his employees, which

he stated, he had come to know only because of media reports.

He further said that he would "not be capable to live as long as he lives" with the hard choice

his management had taken and clarified that he was taking back the employees as they were

"family to him and as chief of the family he has to take care of them.

A month afterward - in November 2008, Jet make publicly known that it would think grave

salary cuts for its staff to grip the aviation crisis.

At the same time as many industry analysts were astonished by the roll of events that had led

to the restoration of the sacked employees, they opined that Jet had been enforced to take

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severe decisions such as laying off employees or starting pay cuts because of the unstable

phase from end to end of which the aviation industry was passing.

In September 2008, the International Air Transport Association (IATA) had prophesy that all

over the world the aviation industry would lose nearly US$5.2 billion depending on an usual

jet fuel price of US$140.

The rise in fuel prices had short of the fuel bills of the aviation industry to US$186 billion by

the end of the year 2008.

Inconspicuous Note:

Jet, with its head office in Mumbai, India, started as an air taxi operative in April 1992 and

begin its commercial operations a year later, in 1993.

It operated with just 24 flights diagonally 12 places in the starting, but had outstanding

increase with additional 357 daily flights to about 62 domestic and international places in

2008.

In 2005 it was listed in the National Stock Exchange (NSE).

OnJune 2008, it drive more than 370 every day flights to about 68 places both in India and

out of the country together with, New York, Toronto, Singapore, Kuwait, Brussels, Abu

Dhabi London (Heathrow), Hong Kong, Shanghai, San Francisco, Kuala Lumpur, Colombo,

Bangkok, Kathmandu, Dhaka, , Bahrain, Bangkok, Muscat, Dubai, etc...

HR Issue, Administration and Decision Making at Jet

As stated by the company, Jet paid the highest significance to the arrangement of its senior

management and its person resources with importance on cooperation as a key achievement

feature. In the service-based industry, Jet gave main concern to high quality, specialized

service to its clients...

The Retrenchment Drama become opened out

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The retrenchment drama become opened out on October 16, 2008, when Jet made it to public

that it would temporary discharge nearly 1,100 of its workers a day subsequent to it had

already laid off approximately 800 of its cabin squad members.

The second part of 1,100 employees comprises persons from departments like administration,

person providing services in flight, and the cockpit squad.

The company took decision to suspend these employees with no previous note but presented

them a months payment...

Cause for Retrenchment

The rising stimulatingly difficulty in the Indian aviation industry were the main causes for

the temporary discharge of workers at Jet, as stated by the company and other industry

experts.

Unstable Times for the Indian Aviation Industry

The Indian aviation industry was growing at fastest rate in aviation industries in the world.

Indian skies up to private operators due to the Air Corporations (Transfer of Undertakings

and Repeal) Act 1994. Separately from government-owned airlines, the aviation industry was

inundation with private operators and low cost carriers...

The discussion Leading to the Restoration ofEmployees

Jet got critical remark from numerous quarters for retrenching its employees. Most of its

employees protested in opposition to the decision to expel them with no prior note. Most of

them had paid considerable amounts to get teaching at major Aviation Training institutes...

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Gigantic Salary Cuts Follow

Jet decided on a 20% cut in the salaries of its pilots, engineers, and some other staff in the

last week of November 2008. The company intended a 5 percent to 10 percent incise in the

pay of pinnacle officials who draw a pay above Rs.75,000...

ARTICLE

Voluntary Separation Scheme andRetrenchment

The ongoing business slowdown in the construction industry

in Malaysia has come down more hard on many construction companies, especially those

that rely on sturdy on Government projects.

The Prime Minister, Dato Seri Abdullah Hj Ahmad Badawi has summed this up very

briefly in his press conversation with the reporter of The Star, after opening the Malay

Construction Entrepreneurs customary practice 2005 on June 11, 2005, when he said:

Contractors should feature the bleak actuality thatthe construction explosion

in the country is over. They have to look forother favorable chance, including

those across the sea. It is very likely we will not see one more construction

blast in the country. We have built many roads, hospitals and schools to last us

a very long time .I am not saying there will not be to any further extent large

infrastructure projects, but it will not be like earlier. The days of durian

weakling are gone.

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The hold back and pessimistic business environment has awful

Consequence that have overstated or will affect a lot of businesses and persons in the

construction industry.

The pre-occupied relay to are how to circumstances the not easy years in front and stay nose

above water.

The predicament quantity present over of excess labor force, maintaining costs usefulness

and managing human resources would certainly be frightening challenges to management.

Under these conditions, an expected way, though responsive, is to lessen the labor force.

RIGHTSIZING AND REDUNDANCY

Retrenchment, as a significant effect of rightsizing, has forever

been a quite responsive matter.

Alike to other forms of extinction and removal from office, retrenchment is a form of

dismissal of a workman and he may consider that he has been dismissed devoid of just

cause or pretext and hence makes illustration for reinstatement under Section 20(1) of the

Industrial Relations Act 1967, which provide bury alia:

Where a workman, regardless of introducing the first of alternative

possibilities he is a member of a trade amalgamation of workmen or if not,

consider that he has been terminated in the absence of just root or expurgate by

his employer, he may create thing that represents another in text to the

Director General to be reinstated in his previous employment; the

representations can be filed at the office of the Director General adjacent to the

position of employment from which the workmen was disperse.

In the industrial law of Malaysia, it does not subject that the statement worn in the letter is

retrenchment or voluntary separation.

Numerous retrenchment and division cases in the earlier period were directed to the

Industrial Court.

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In two retrenchment cases were awarded in 1997, the two retrenched workmen were

reinstated with complete back-salary adding in surplus of RM 1,000,000.

That was surely a heavy sum to reimburse sideways from having to reinstate the workmen to

the jobs, which were affirmed redundant before

.

VOLUNTARY SEPARATION SCHEME (VSS)

The Government has recommended company to take on voluntary separations scheme in its

place of usual retrenchment of extra employees, which frequently were antagonistic and

disagreement flat, mainly where the workmen were member of a trade union.As the expression suggests, the employees are to contribute in it voluntarily.

Consequences of an Involuntarily Voluntary Scheme

The consequences of a case where the Industrial Court has

resolute that the division was certainly involuntary, the

division then becomes an unfair removal from office and the Industrial Court may honor

reinstatement of the workmen or order compensation in lieu of reinstatement

.

RETRENCHMENT

Industrial Law on Retrenchmen t

Section 13(3) of the Industrial Relations Act 1967 confer on the employer the correct on

extinction of the services of a workman by cause of redundancy or by cause of reorganisation

of an employers profession, business, trade or work or the criterion for such extinction.

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The Industrial Court has forever recognized such employers true and will not upset the

extinction of workmen by retrenchment or voluntary separation unless it is impulsive, unfair

or malevolent.

The Principle Of Last-In-First-Out (LIFO)

It is pedestrian law and a well-known standard that in retrenchment of excess employees, the

standard of LIFO must be adhere to.

The Industrial Court has in past cases functioned very harsh inspection where there were

deviations. Only in a dash of cases had the Court accepted deviations. On the other hand, in

actuality, nearly all companies initiate it difficult to obey totally with the LIFO standard.

Brutal Financial Consequences of an Unjust Retrenchment

The financial consequence of an unjust retrenchment can be very brutal.

Sideways from the likelihood of reinstatement which is brutal on financial impact, the

Industrial Court could also award money instead of reinstatement.

Reinstatement

The disperse employee will have to be reinstated to his previous place.

With the reinstatement, the Company will have to disburse the employee back-pay from the

date of dismissal until the second quarter of 2005 last examination day of the case with no

any loss in service and reimbursement, less any imbursement of compensation on

retrenchment or VSS. With brutal surfeit of cases now, some cases had in use some three to

four years from the date of removal from office to the last hearing date.

Compensation in lieu of reinstatement

In lieu of reinstatement, the Industrial Court may honor compensation.

As a guide, the Court usually honors:

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Compensation for earlier services at one months salary for every year

of service up to the last day of hearing in Court; PLUS

Compensation for loss of employment, i.e. back-pay, from date of

removal from office to the final day of hearing in Court.

TO OFFER VSS OR TO RETRENCH

With a excess labor force that is extra to the manpower that a company requires, there could

be more than a few options like redeployment, re-assignments, realignments, retrain for

additional jobs, regional postings, outplacements, etc..

On the other hand, one hard and inevitable fact relics is that when a company is not capable

to soak up the excess labor force, a redundancy arises.

The Differences between Retrenchment and VSS, Its Pros and

Cons

The differences can be consideration among these two procedures to lessen excess

employees, and among them are:

CONDUCTING AN EXERCISE - WHETHER VSS OR

RETRENCHMENT

To perform an effectual retrenchment or VSS work out, a company ought to be equipped to

pay out long hours to premeditate on such a want and its impact on the company in addition

to the employees.It has to analyse its organizations formation; spotlight on post-event Organisation efficiency;

understand and be distress for there dundant employees; and make bigger support to

redundant employees.

More, the company should focus on how to commune effectively such requirements; call for

perceptive and collaboration; and combine the lingering team into a lean, consistent and

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strong-minded labor force. In order to grip it well, there are three standard phase to such an

exercise.

The Planning Phase

The Planning Phase is possibly the mainly serious job in a Retrenchment or VSS exercise as

it may well enchantment success or tragedy.

A Company must take this gravely and should not spare any effort to plan it well, having due

deliberation for the well-being of the Company, the affected employees as well as the

outstanding employees after the exercise, so as to lessen any negative impact that could

seriously undermine the interests of the Company.

The Implementation Phase

The implementation of any retrenchment or VSS exercise can be disturbing both on the

precious employees and the managers who have to commune the sad or not too good news.

There are not lots of managers who have the knowledge to grip such a disturbing event.

In one retrenchment exercise, the Managing Director establishes it hard to hand over the mail

of retrenchment to the exaggerated employees and he determined to send it from side to side

by the office boy. You can envision the uproar; frustration, rage and hurt.

This had resulted in approximately all the workers filing representation for unjust discharge.

The post-event results on productivity; joint effort and assistance were most awful earlier

than the retrenchment.

It is relevant that the Implementation Phase is correctly strategies and that the affected

employees are handled suitably with sympathy, care and self-esteem.

The Consolidation Phase

It is evenly significant that a company must pay close concentration on the Consolidation

Phase for the left behind employees. Many employees would be apprehensive whether there

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could be additional retrenchment or VSS exercise in the upcoming months of which they can

be affected. There will be additional unenthusiastic thoughts than optimistic reactions.

Therefore, they will be looking ahead to the company for guidelines and reassurances. In the

Consolidation Phase, the company should spotlight on how to infill confidence, jelland

strengthen the remaining labor force to spotlight on business and optimistic actions that will

make sure the very endurance and success of the company.

COMPENSATION PACKAGE AND FINANCIAL COST IMPACT

In deceitful the compensation package, there are a variety of practices, which defer from

company to company as well as.

Retrenchment VSS

- Focus on real excess

- Focus on dropping the accurate number of employees

- Focus on accurate fit

- May not attract the right fit to stay potentially antagonistic friendly Hard approach Soft

approach

- Managers find it hard to grip simple and less disturbing

- Able to get rotten the accurate number

- May have tricky to attain number

-Contractual compensation or Needs an incentive or

- In law inducement

-Yield can be disrupt

- Fewer disturbances to output

- Impending claims for unjust

- Fewer claims on unfair dismissal

- May finish in reinstatements

-Less experience to reinstatements

- Potentially extra less experience to more compensation

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- Impact on company image

- Company image is slightest impacted

- Industrial actions by employees

- No cause for industrial events industry to industry.

It all relies on the financial ability of the company to convene the employees ambition.

Among the Recompense factors that a company should think are:

- Retrenchment and termination benefits in contract or in law and market practices

- Deliberation for those approaching retirement should there be a maximum cap

- A bump sum top-up imbursement or an ex-gratia

- Payment instead of notice

- Payments instead of balance yearly abscond- Privilege imbursement

- Retirement assistance (contractual) on top of retrenchment benefit

- Housing loan reimbursement postponement

- Car loan reimbursement postponement

- Addition of staff purchase format

- Special health check

- Paternity benefits to pregnant female workforce

- Medical support for employees

In the nonappearance of contractual necessities for retrenchment remuneration, the frequent

practice seems to propose the compensation at a tempo of one months fundamental salary

for each year of service.

There were cases where few company had rewarded compensation at rates as high as 2.5

months for each year of service.

For employees who are enclosed by the Employment Act 1955, the compensation cannot be

fewer than the necessities in the Employment Regulations 1980,

Which provide as follows?

Fewer than 1 year of service: Nil

Greater than equal to 1 but less than 2 years of service: 10 days wages x completed years

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Greater than equal to 2 but less than 5 years of service: 15 days wages x completed years

Greater than equal to 5 years of service: 20 days wages x finished years

Also, for employees who are enclosed by the Employment Act 1955, the suitable observe

except the agreement provide for more favourable conditions; it cannot be less than:

Less than 2 years of service: 4 weeks

Greater than equal to 2 but less than 5 years of service: 6

weeks

Greater than equal to 5 years of service: 8 weeks

In a VSS exercise, a number of companies had affirmed that there would not be any notice

related as the offer and reception is depends on intended basis.

PITFALLS TO SHUN

To shun the mistake of earlier failed cases of retrenchment and VSS and to make sure both

smooth implementation as well as organization efficiency, a company be supposed to shun

the subsequent ordinary pitfalls in a retrenchment and VSS exercises:

- Leap on the bandwagon to retrench to make the most of profits

- Lack of a working party to lead the exercise

- Waver on needs for outdoor consultants pending the last minute- Unsuccessful to map the useful organization based on future business number

- Unsuccessful to establish selection criteria on manpower needs

- Unsuccessful to inform all employees records

- Recognize excess employees first relatively than redundant posts

- Random judgment on retrenches

- Unsuccessful to give good reason for any deviations from the LIFO standard

- Reject to pay suitable retrenchment compensations

- Reject to provide any notice to the retrenches

- Stride the employees out of the door

- Ignore the opinion of the amalgamation

- Unsuccessful to develop commune brief, likely Questions and Answers

- Unsuccessful to inform the Ministry of Human Resources

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- Unsuccessful to seek out help from the Inland Revenue Board for premature and mass

clearances

- Unsuccessful to inform the Immigration Department where overseas human resources are

concerned

- Unsuccessful to check the circumstances and address quickly all grievance, query and issue

- Ignore security necessities on papers and possessions

- Unsuccessful to think the self-esteem and yield of remaining employees

- Randomly hand out the remaining functions of retrenched employees

- Lack in lucidity of role and responsibilities

- Did not try again and build up lasting employees

- No actions to come together the remaining workforce towards new

organization goal

Lack in strategy on a variety of means and process for a even and pleasant implementationLack of heed and sympathy

CONCLUSION

Retrenchment is a very traumatic exercise and the

downside risks and troubles can be overwhelming if a company handles it poorly.

At the same time as a company needs to retrench excess employees, the way and efficiencyin conducting the exercise effortlessly with care, compassion and dignity cannot be

overlooked.

There are lots of pitfalls apart from the reality that the retrenches might file a case in

opposition to the company.

The post event output is serious to the company after having retrenched or separated a

considerable number of employees and paying a huge sum of amount in compensations.

How rapidly a company can recuperate and move ahead positively and powerfully depends

basically on how the retrenchment is designed and instrumented. There is no short cut.

BIBLIOGRAPHY

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www.mbam.org

www.associatedcontent.com

www.citehr.com

www.nature.com

www.ingentaconnect.com

www.sevafrica.com

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