Good Practice

Good Practice Note: Managing Retrenchment

July 31, 2005

28 pages | © August 2005 IFC | Complimentary

Retrenchment may sometimes be a necessary part of securing future employment for large sections of the workforce. However, the key to a good outcome lies in developing and implementing a retrenchment procedure that achieves the commercial gains of the process while minimizing the impact of job losses on workers and communities.

The aim of this Note is to provide guidance to IFC clients and the wider private sector operating in emerging markets on how best to plan and manage significant job losses. A well-managed process can help avoid a host of problems and result in better outcomes for the company, its employees and the wider community. This Note contains a range of good practice measures that can help companies think through the key issues, avoid common pitfalls and hidden problems, and design a comprehensive retrenchment plan.

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