Question

Downsizing can take a toll on society, especially when a large percentage of a firm’s employees are terminated. Should government restrictions be placed on downsizing? Why or why not?

Answer 1

Downsizing is an economic and social evil which disturb the economy of a country at large. Due to downsizing of firms employees mass economic destruction coupled with social instability increase at an increasing rate.

To prevent downsizing government must have to be conscious and monitor constantly about the economical position of the firms where large number of people are working for their lively hood. If they are under formal sectors then the work would might not be so difficult ,because they are directly under the per view of the government.

As per my view downsizing's outcomes are really difficult to adjust with so for the economic balance government must have to impose certain restrictions on employment downsizing like penalty for without information downsizing, withdrawal of subsidies, cancellation of licence etc. With different alternatives of downsizing it is also suggested that as per the labour law of federal government like monetary compensation, prior notice before downsizing are must have to get compulsory for the workers.