ECONOMICS AND FINANCE ASSIGNMENT

Economics and finance assignment

Economics and finance assignment

Answer 1

Expected Results of the Action

The decision which is being talked about is really a big decision in both aspects. Taking both the employees and the employer into account it can be said that this one is really important decision to be made. The consent of the employer is really important as far as this particular decision is concerned. Although this decision is off-course not something this can be done with a mutual understanding, but it can be done in a much better way if the employer is taking the feelings of the associated workforce into account.

The global recession has made the cost cutting an essential thing to be considered by every organization. Employees are also aware that the organizations which are facing issue like bankruptcy and facing shortage of resources have no other options. In fact the employees are satisfied with these salary reductions as far as their jobs are not secure (Lewis, 2009).

Another really impotent thing for the employers is to be well aware of is that the employees whose contracts are already terminated might still be coming back with claims for their unfair release and this might be a case even after they have accepted the new contracts they are being offered. Without a doubt the fact is that employees can accept all the new terms and the conditions of the employment, but still pursuing a claim for the unfair dismissal is frequently overlooked by the both lawyers and the employers (Lewis, 2009).

This might be done but performing it with consent of the employees and involving the lawyers in the process will be a better step to be taken by the management.

General Conclusion

General conclusion which can be drawn on this particular decision is that all the ...