Prof Nielsen said: “The characteristics of the restructuring process, such as fairness of procedures, communication and change management in general have been found to have an impact on worker well-being. Some groups of workers react less negatively, for example if they have more chance of influencing the process.
Q. What is employee retrenchment?
Retrenchment is the termination of employment initiated by the employer through no fault of and without prejudice to the employees. It is an act of the employer of dismissing employees because of losses in the operation of a business, lack of work, and considerable reduction on the volume of his business.
Q. What is meant by restructuring of loans?
A loan for which the parties have agreed to alter the terms, usually to make them more favorable to the borrower. For example, the borrower may restructure a loan to receive a lower interest rate or monthly payment.
Q. Does restructuring mean layoff?
When organizations go through a restructuring, departments are often merged, whittled down, or eliminated altogether, leading to layoffs. As an HR professional, you play a key part in the layoff process.
Q. How does a company decide who gets laid off?
In a performance-based layoff, HR and department leadership work together to decide which employees are leaving. The department leader produces names of the lowest-performing employees and HR ensures that the performance assessments are consistent.
Q. What happens during restructuring?
Restructuring is when a company makes significant changes to its financial or operational structure, typically while under financial duress. Companies may also restructure when preparing for a sale, buyout, merger, change in overall goals, or transfer of ownership.
Q. How do you determine who should be laid off?
Deciding Who to Lay Off
- Decide what the company will need going forward.
- Figure out which departments or positions will be cut.
- Establish the criteria for layoff decisions.
- Make a list.
- Check it twice.
- Keep enough people to do the work.
Q. Who gets laid off first at a company?
1) Seniority Based Selection This is one of the simplest methods. Basically, the last employees to get hired become the first people to be let go. This makes sense in a logical sort of way. If they were just recently hired they probably haven’t become organizational assets yet.
Q. Who is most likely to get laid off?
Layoffs? 10 Types of Employees Who Are First to Be ‘Fired’
- The consummate slacker.
- The employee who embarrasses his boss.
- The person who costs too much.
- The co-worker who doesn’t fit with office culture.
- The low performer.
- The sneak.
- The people unnecessary for business operations. Office space | Ian Gavan/Getty Images for O2.
- The least tenured person. Climbing ladders | iStock.com.
Q. What are my rights if my employer lays me off?
Employees who are laid off or put on short-time working are entitled to pay for days they do no work at all. This is called ‘statutory guarantee pay’ and is the legal minimum an employer must pay. Employers might offer a better guarantee pay scheme. Employees should check their contract.
Q. How is seniority calculated?
Your seniority is usually based on your hire date – and sometimes it can come down to the minute you were hired too. Most often, seniority relates to job postings, overtime, and layoffs.
Q. Is the seniority system fair?
Historically, most junior unionized workers have accepted the seniority rule as fair even if they personally did not benefit. The system is perceived as a fair standard, since everyone will enjoy seniority at some point in his career.
