Reduction of working time (Workplace programs, policies and practices)
Reduction of working time
Gradual retirement
Definition:
Phased or gradual retirement allow older employees, usually with long service records, to progressively reduce their working time and workload over a period of time instead of abruptly shifting from full-time employment to retirement.
Considerations:
- From the employer's point of view, phased retirement programs can be useful in retaining skilled older employees who would otherwise retire (especially in sectors where there is a shortage of entry-level job applicants), in reducing labour costs, or in arranging the training of replacement employees.
- Gradual retirement also allows employers to plan attrition and to a certain extent maintain employee morale when a company restructures its operations.
- This practice can also be beneficial for older workers, not only in easing the transition to retirement, but also in balancing their work and family responsibilities, particularly if they must care for an ageing spouse or elderly relative(s).
Examples of collective agreements clauses
Job sharing
Definition:
Two employees share a full-time job. This practice involves not only sharing job duties and responsibilities, but pay and holidays as well.
Considerations:
- Employees sharing a job must be able to work as a team and communicate effectively.
- This practice may increase productivity particularly if employees who are sharing a job have complementary skills.
- It can also be attractive if a job must be filled full-time or if there are few part-time jobs in the company. It can prove an incentive to the retention of experienced employees who want to reduce significantly reduce their hours of work for personal reasons (e.g. employees who are considering gradual retirement).
Examples of collective agreements clauses
Voluntary part-time work
Definition:
Employees choose to work fewer hours than the standard 37.5 or 40 hours per week. This practice may be temporary (that is, established for a specific period) or permanent.
Considerations:
- Employees with health problems or with disabilities can maintain some link with the labour force.
- Employees may have more time to care for their dependents and may be less stressed.
- Employee benefits are often established on a prorata basis for part-time employees. Part-time work may limit or reduce access to some employee benefits or governmental programs (e.g. employment insurance, pension plans). This practice may also have a negative impact on promotion and training opportunities.
- This practice may help increase operational flexibility of companies during times of heavy workload.
- It may facilitate re-entry in the labour force for employees who had interrupted their labour market participation.
- It may increase productivity by helping to reduce tardiness and absenteeism, by increasing employee morale and it may also serve as an incentive to recruitment and retention.