Posted by Steve Gibbons

Guidance on retrenchment and restructuring – IFC

This guide on good practice in retrenchment was written for the International Finance Corporation, the Private Sector arm of the World Bank Group. The Good Practice Note is part of a  suite of guidance from IFC on labour issues to accompany the organisation’s labour rights performance standard – PS2.

The Good Practice Note provides guidance to private sector companies operating in emerging markets on managing the retrenchment process in a socially responsible manner and in accordance with international standards and best practices.

It is relevant for investments where significant job losses are anticipated or have recently taken place including: privatizations, total or partial closures of a plant/facility, restructuring and downsizing due to efficiency gains or changes in demand. The Note provides a useful tool for companies including practical, how-to guidance on a range of topics, including: consultation, national and legal requirements, selection criteria, appeals and grievances, severance pay, alternative employment for retrenched workers, and community impacts.

Click here to download the guide, hard copies of which can also be ordered from the World Bank information shop