Voluntary Exit Programs Could be the New Word for “Lay-Off” Soon

The dilemma between sharing sacrifices and isolating the sacrifices to the lower end employees is constantly being debated and discussed to see which philosophy will benefit the company more. This could be resolved by implementing programs to allow employees to voluntarily resign their positions within the company. These programs would offer incentives to those who wished to exit and freed up a lot of sacrifice on those who couldn’t bear the burden of it anymore. A prime example of this new doctrine of managing employee turnover is seen in the Memo from Alberta Health Services. This section will help explain the incentives which are offered by early voluntary termination:

The initial version of the VEP Expression of Interest Form, Part C, contained a statement that indicated the VEP payment amount would be “inclusive of any and all termination entitlements”. This does not include the payout of any accrued vacation or other earned entitlements that get paid out on termination. It does mean that employees who receive the VEP payout are not entitled to other severance/termination benefits such as Employment Standards Code severance payments.

These programs are beneficial to the company because their employees can choose to leave and it doesn’t force the company into a situation where they have to lay off people. Toyota might want to look at implementing some of these Voluntary Exit Programs (VEP) into their own philosophy and try to alleviate some of the pressure placed on others inside the organization. The quandary between shared sacrifice and layoffs will not be solved soon and actions such as voluntary exit programs will become a more familiar face in human resource codes.


McGillivray, S. (2009). Unted Nurses of Alberta. Retrieved Feb. 19, 2010, from Alberta Health Services, Edmonton, AB, Can.. Web site: http://www.una.ab.ca/news/archive/LofUonVoluntaryExit.

Explore posts in the same categories: Ethics Governance

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