Nokia Voluntary Resignation Package and sabbaticals

In an effort to battle the Global Financial Crisis, Nokia has released an new scheme encouraging Voluntary Resignations and voluntary leaves.

As part of its previously announced plans to increase cost-efficiency and adapt to the challenging market environment, Nokia today announced new voluntary measures aimed at reducing personnel-related costs and lessening the need for involuntary redundancies. The initiatives announced today include the global Voluntary Resignation Package and wider use of short-term unpaid leaves and sabbaticals. Nokia also encourages employees to take holiday as time off instead of taking cash compensation in 2009.

“The response from employees and employee representatives in proposing ideas to help reduce personnel-related costs has been encouraging. We have considered these and are now announcing voluntary initiatives that could contribute to our efforts to adjust our cost base to the current market environment. If successful, the voluntary initiatives will lessen the need for involuntary redundancies,” said Hallstein Moerk, Nokia’s Head of Human Resources.

The global Voluntary Resignation Package will be made available for employees worldwide, with the exception of direct labour and senior executives. The terms and conditions of the package are in accordance with local practices and legislation. The Voluntary Resignation Package will be open for application from March 1 until 1,000 employees have applied, closing at the latest May 31, 2009.

During 2009, Nokia will also grant short-term unpaid leaves and sabbaticals of, for example, one month, more freely where operations allow and business continuity is not jeopardized. Furthermore, during 2009 the company will also encourage employees not to “cash in” their holiday but to take their holiday as time off, as it is intended.

Terms and implementation of all these schemes are subject to local practice and legislation.

Source: Nokia Press release