Thread: Jolla Troubles
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Posts: 285 | Thanked: 1,900 times | Joined on Feb 2010
#23
Originally Posted by billranton View Post
Lots more information here:

http://techcrunch.com/2015/11/20/jol...d-alternative/

I wonder who the unnamed single investor is...
I wonder if the writer fully understands the meaning of temporary layoff in this case. I guess it's more or less unique practice in Finland, at least I'm not aware that such practice exists elsewhere... however, it goes somewhat like this:

- Company finds itself in difficult situation and needs savings, therefore cooperation negotiations are started with the staff, which lasts six weeks minimum
- During negotiations alternatives are searched to reach desired saving, to avoid layoffs (it seems to be more like a theater most of time though...)
- After negotiation period company will go forward with layoffs, temporary layoffs (aka. forced leave) and other things.

Temporary layoff means that employment contract doesn't end, but is effectively frozen for certain amount of time. During this period employer doesn't pay salaries and employee of course is not required to work. Employee is also somewhat free to work elsewhere during the time and after it they return to work as usual. This method is usually used when difficulties are expected to be only temporary and company wants to keep the knowhow. Permanent layoffs are used when reduction on head count is deemed to be necessary permanently or for very long time (though some companies actually prefer very long forced leaves... ie in shipyards...). So, if employees don't resign, they are still there if/when funding returns.
 

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