Organizations are bracing for an uncertain future by implementing hiring freezes and, in some cases, reducing the size of their workforce.
In the past year, we have seen announcements of major headcount reductions from multinational corporations. We can expect to see this trend continue in 2024, with certain sectors now bracing for a somewhat challenging future where supply and demands rapidly may change. In today’s economic climate, pressure is increasing on organizations to optimize the efficiency of their workforce and associated costs. Flexibility will be a key factor for success.
Employers need to proceed carefully when planning a workforce transformation project. Labor and employment law issues can pose significant challenges for business transformations. Managing diverging challenges of workforce retention and reduction programs is crucial for success.
When planning a workforce transformation, it is important that employers have a good understanding of the regulatory landscape to ensure compliance with local laws and regulations. Multinational organizations face differing regulations across jurisdictions, each with separate process requirements that can make global restructuring challenging and complex. Generally, a “one size fits all” approach is not possible. Failure to properly address workforce issues can expose organizations to various risks, including damage to employee relations, the organization’s brand, and its business relationships.
In this edition of the EY Global Labor and Employment Law Strategic Guide, we survey the legal landscape regarding workforce transformation in 48 jurisdictions.
