Worker Buyout

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Worker Buyout

A situation in which an employer pays a (usually large) fee to an employee in exchange for that employee's resignation or retirement. Despite the upfront payout, a worker buyout usually is less expensive over the long term than keeping the employee on staff. As such, worker buyouts are sometimes used in lieu of layoffs.
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References in periodicals archive ?
WORKER buy-outs in Wales are to get support from the Business Succession and Consortia project being delivered by the Wales Co-operative Centre.
It also includes union-owned capital investment funds to shore up faltering firms and worker buy-outs of abandoned businesses.