Financial Crisis - Valid Reason For Termination?

The ongoing financial crises gripping the world, including the UAE, shows no sign of abating, so businesses are increasingly looking at means of strengthening their financial standing. Therefore, cost cutting exercises are inevitable as new projects are shelved, existing ones put on hold and businesses reduce volumes. Unfortunately, in testing times like these, many companies are contemplating redundancies or staff reductions.

Reducing the workforce has never been a pleasant task. Having said that, redundancies can be much more unpleasant if not properly planned and implemented. Bad practices can expose the company to disputes, litigation and consequently damages in terms of money and goodwill.