Minimizing psychological impact on workers in genuine redundancy: formulating guidelines for employer

The competing interests of a worker and an employer require that a worker’s security of tenure must be balanced against the just expectation of the employer for latitude, under genuine redundancy in the organisation, to retrench the surplus labour or workers. Such redundancy may arise due, among o...

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Main Authors:	Ali Mohamed, Ashgar Ali, Ishan Jan, Mohammad Naqib, Ahmad, Muhamad Hassan, Kasi, Arun
Format:	Conference or Workshop Item
Language:	English
Published:	International Organization Center of Academic Research 2018
Subjects:	KPG Malaysia
Online Access:	http://irep.iium.edu.my/66980/ http://irep.iium.edu.my/66980/ http://irep.iium.edu.my/66980/7/66980%20MINIMIZING%20PSYCHOLOGICAL%20IMPACT.pdf

id	iium-66980
recordtype	eprints
spelling	iium-669802018-10-25T07:44:23Z http://irep.iium.edu.my/66980/ Minimizing psychological impact on workers in genuine redundancy: formulating guidelines for employer Ali Mohamed, Ashgar Ali Ishan Jan, Mohammad Naqib Ahmad, Muhamad Hassan Kasi, Arun KPG Malaysia The competing interests of a worker and an employer require that a worker’s security of tenure must be balanced against the just expectation of the employer for latitude, under genuine redundancy in the organisation, to retrench the surplus labour or workers. Such redundancy may arise due, among others, to a reduction of business activities, perceived advantages of greater mechanisation and technological change, deployment of capital resources in different ways, reorganisation of business operations with a view to enhancing profitability, and reducing losses either generally or in selected areas. For a retrenchment to be justified, there must be convincing grounds to establish redundancy. Whether a genuine redundancy is established and a retrenchment is justified in any particular case would depend on the factual matrix and circumstances of each case. It is not doubted that a retrenchment of workers would have psychological impact on the affected workers, more so if the worker has been in service for a long time in the organisation. He will likely face difficulty in relocating and/or securing other employment due to various factors. Hence, it is appropriate that certain viable and practicable guidelines are developed for the employer to adhere to in order to minimize the impact of retrenchment exercise on the workers. It is an established rule that an employer should ensure that retrenchment, if necessary, is carried out in a fair manner. It includes manner of selecting the worker or workers declared to be redundant, giving a fair opportunity to them to make representations on the possibility of re-deployment, etc. The courts would not normally interfere with a bona fide exercise of rights of an employer in a retrenchment exercise, which rights are inherent in it. However, any form of victimisation of the employee, whether by arbitrary, perverse, baseless action or otherwise by the employer which is considered to be unnecessarily harsh or was not just or fair, or other mala fide action on the part of the employer, may warrant the courts’ interference. In light of the above, this paper will discuss retrenchment and its psychological impact on workers with particular focus on formulating some guidelines for employers with a view of minimising the impact. International Organization Center of Academic Research 2018 Conference or Workshop Item PeerReviewed application/pdf en http://irep.iium.edu.my/66980/7/66980%20MINIMIZING%20PSYCHOLOGICAL%20IMPACT.pdf Ali Mohamed, Ashgar Ali and Ishan Jan, Mohammad Naqib and Ahmad, Muhamad Hassan and Kasi, Arun (2018) Minimizing psychological impact on workers in genuine redundancy: formulating guidelines for employer. In: 4th International Conference on Advances in Education and Social Sciences, 15th-17th October 2018, Istanbul, Turkey. http://www.ocerints.org/adved18_e-publication/papers/141.pdf
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	KPG Malaysia
spellingShingle	KPG Malaysia Ali Mohamed, Ashgar Ali Ishan Jan, Mohammad Naqib Ahmad, Muhamad Hassan Kasi, Arun Minimizing psychological impact on workers in genuine redundancy: formulating guidelines for employer
description	The competing interests of a worker and an employer require that a worker’s security of tenure must be balanced against the just expectation of the employer for latitude, under genuine redundancy in the organisation, to retrench the surplus labour or workers. Such redundancy may arise due, among others, to a reduction of business activities, perceived advantages of greater mechanisation and technological change, deployment of capital resources in different ways, reorganisation of business operations with a view to enhancing profitability, and reducing losses either generally or in selected areas. For a retrenchment to be justified, there must be convincing grounds to establish redundancy. Whether a genuine redundancy is established and a retrenchment is justified in any particular case would depend on the factual matrix and circumstances of each case. It is not doubted that a retrenchment of workers would have psychological impact on the affected workers, more so if the worker has been in service for a long time in the organisation. He will likely face difficulty in relocating and/or securing other employment due to various factors. Hence, it is appropriate that certain viable and practicable guidelines are developed for the employer to adhere to in order to minimize the impact of retrenchment exercise on the workers. It is an established rule that an employer should ensure that retrenchment, if necessary, is carried out in a fair manner. It includes manner of selecting the worker or workers declared to be redundant, giving a fair opportunity to them to make representations on the possibility of re-deployment, etc. The courts would not normally interfere with a bona fide exercise of rights of an employer in a retrenchment exercise, which rights are inherent in it. However, any form of victimisation of the employee, whether by arbitrary, perverse, baseless action or otherwise by the employer which is considered to be unnecessarily harsh or was not just or fair, or other mala fide action on the part of the employer, may warrant the courts’ interference. In light of the above, this paper will discuss retrenchment and its psychological impact on workers with particular focus on formulating some guidelines for employers with a view of minimising the impact.
format	Conference or Workshop Item
author	Ali Mohamed, Ashgar Ali Ishan Jan, Mohammad Naqib Ahmad, Muhamad Hassan Kasi, Arun
author_facet	Ali Mohamed, Ashgar Ali Ishan Jan, Mohammad Naqib Ahmad, Muhamad Hassan Kasi, Arun
author_sort	Ali Mohamed, Ashgar Ali
title	Minimizing psychological impact on workers in genuine redundancy: formulating guidelines for employer
title_short	Minimizing psychological impact on workers in genuine redundancy: formulating guidelines for employer
title_full	Minimizing psychological impact on workers in genuine redundancy: formulating guidelines for employer
title_fullStr	Minimizing psychological impact on workers in genuine redundancy: formulating guidelines for employer
title_full_unstemmed	Minimizing psychological impact on workers in genuine redundancy: formulating guidelines for employer
title_sort	minimizing psychological impact on workers in genuine redundancy: formulating guidelines for employer
publisher	International Organization Center of Academic Research
publishDate	2018
url	http://irep.iium.edu.my/66980/ http://irep.iium.edu.my/66980/ http://irep.iium.edu.my/66980/7/66980%20MINIMIZING%20PSYCHOLOGICAL%20IMPACT.pdf
first_indexed	2023-09-18T21:35:06Z
last_indexed	2023-09-18T21:35:06Z
_version_	1777412767865634816

Minimizing psychological impact on workers in genuine redundancy: formulating guidelines for employer

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