Downsizing Preparation Checklist

Purpose: This is a document that serves as a guide before conducting a downsizing process like retrenchment or voluntary separation scheme

( )       What are the reasons and justification for the downsizing?

( )     What are the policies in regards downsizing from the Ministry of Human Resources. Ensure that these policies are made known to all and complied with.

( )     Liaise with the Labor office in the Ministry of Human Resources in order to get advice and to ensure that all policies and procedures in regards downsizing are adhered to.

( )       What would be the total number of people involved in the exercise i.e. the number to be retrenched or the number to be laid off from a voluntary separation scheme?

( )       What would be the departments or sections involved?

( )     What are the criteria for downsizing. Examples: seniority, performance, restructure of department, job elimination through technological changes etc.

( )     What would be the new structure of the organization after the downsizing?

( )     Liaise with the Company’s legal personnel to ensure that legal processes are adhered to.

( )     What would be the remuneration guidelines for the downsizing e.g. severance pay, leave payments, notice period payments etc.?

( )     What would be the total budget for estimated payments to be made for the overall downsizing exercise?

( )     What are some of the documents to be prepared in regards the downsizing exercise?

( )     Draw up a timeline in regards various steps and phases in the downsizing process.

( )     How much of advance notice will be given?

( )       Voluntary Separation Schemes. Find out if any staff wishes to quit voluntarily, or if employees of retirement age wish to take early retirement. Determine the amount of severance pay to be offered.

( )     Draw up a list of alternative jobs that may be offered to those affected by the downsizing.

( )     Provide outplacement services by conducting workshops to assist in finding a job, resume writing and interviewing skills.

( )     Get in touch with employment agencies so that laid off employees can register to find new jobs.

( )     What can be done to retain overall morale of employees during the downsizing exercise and reduce unnecessary rumors?

( )     Draw up a detailed downsizing plan.

( )     Send PK form to the Labor Office.

Note.

 This is only a guideline and may differ from company to company. However if this checklist is adhered to, most of the important factors will have been taken into consideration so that a good downsizing plan can be prepared. As this is only a guideline, when unsure or when conflict occurs, it would be wise to consult legal authorities.  

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