Officer Essay

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IHRM Guide to Redundancy ACKNOWLEDGMENTS This Guide has been created at the request of the Institute of Human Resource Management to respond to the demand for a short, clear and conscise understanding of the issues facing companies at the time of downsizing. Although personally responsible for the opinions expressed in this Guide, it is endorsed by the Institute and I would like to thank the following for the assistance in this compilation. Mr. Michael Downey, Consultant, Koo & Partners, for his detailed comments on the legal aspects; Mr. Felix Yip of San Miguel Brewery and Mr. Robert Wright for their constructive suggestions and other members of the Executive Committee of IHRM for their comments. The examples of calculations of severance pay I have taken from the Labour Department Guide and the taxation issues from a publication by the Inland Revenue Depart ment to whom I am also indebted. Peter Barrett November 1998 1 IHRM GUIDE TO REDUNDANCY Author: Peter Barrett Managing Director Organisation Development Limited Published by : Institute of Human Resource Management Suite 1203, 12/F., Paliburg Plaza 68 Yee Wo Street Causeway Bay, Hong Kong Tel.: 2881-5113 Fax: 2881-6062 Copyright * IHRM 2 1. 2. 3. Introduction Purpose ........................................................................................ CONTENTS Page 4 Page 4 ................................................................................................ HR Planning 3.1 3.2 Effective HR Planning ............................................................. Options to Prevent Redundancy ............................................ Page 5 Page 5 Page 7 Page 9 Page 9 Page 9 Page 10 Page 10 Page 12 Page 12 Page 14 Page 14 Page 14 Page 14 Page 15 Page 15 Page 16 Page 16 Page 16 Page 16 Page 17 Page 17 4. Legal Considerations in Adjusting the

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