WORLD TRADE  
ORGANIZATION  WT/BFA/W/137 
11 October 2005 
 
 (05-4631) 
Committee on Budget, Finance and Administration  
  
 
INTRODUCTION OF AN EARLY  
SEPARATION PROGRAMME IN THE WTO 
 
  
I. BACKGROUND 
1. Most international organisations  and institutions, public or private, have in place severance 
programmes.  These programmes are normally closel y linked to corporate retrenchment / reductions 
exercises and/or re-profiling / structural review exercises.  In some instances, and funds permitting, 
some organisations have also been able to extend the programmes to allow for successor 
arrangements to be put in place, i.e. staff close to  retirement age and who have served for a substantial 
number of years, are eligible to be considered fo r early separation or a mutually agreed separation. 
This modality allows for acquisition of new talent and re-invigoration of the workforce, in response to 
evolving demands and needs.  
2. To date, the WTO has not been able to estab lish any formal severance programmes to respond 
to changing conditions and organisational restructur ing, due primarily to the inexistence of budgetary 
allocations provided for such a purpose.  The prac tice has been to review individual requests from 
staff members approaching retirement age, who have contributed with 15-20 or more years of service, 
and place them on a special leave with full pa y for a number of months (ranging from 2 to 
18/24 months), subject to the approval of the line management.  This application is far from optimal, 
as it impedes the organisation putting in place appr opriate succession and recruitment arrangements, 
given that the position remains financially blocked for the period of leave with pay.  The cost to the 
organisation is considerably high given that tem porary assistance and extra budgetary funds have to 
be identified in order to meet the staffing demands during such periods. 
II. PROPOSED NEW ARRANGEMENTS 
3. It is expected that, over time, targeted adjustme nts may be needed in organisational structures 
and staffing profiles in the WTO, so that we can continue to respond to changing conditions and 
demands, within the complex landscape that the WTO operates in, especially after the post-Hong 
Kong Ministerial Conference in December 2005. 
4. Accommodating these adjustments requires the design and implementation of an early 
separation programme that should enable the WT O to achieve certain corporate and budgetary 
objectives, without it creating an expectation on the pa rt of many staff that there will be a "package" 
available near the end of service.  This can have  the unfortunate effect of some staff no longer 
perceiving the need to upgrade their competenci es and seek developmental opportunities, especially 
as they approach retirement age.  This can also  condition managerial perspectives – such that 
managers may not see the need to invest in staf f feedback and training as part of the performance 
management system. An early separation prog ramme should not undermine long-term staff 
motivation, development and performance. WT/BFA/W/137 
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 5. Given these realities, the aim is to institute new, more targeted arrangements that recognize 
that early separation is not intended as a norm.  In the context of  the 2006-07 Biennium Exercise, the WTO  initially requests the CBFA to consider a budgetary allocation of CHF 1.5 Million for 2006 and 
the same amount for 2007, in order to launch a phased implementation of an early separation 
programme. 
6. The main features of the programme are highlighted in the attached Annex.   WT/BFA/W/137 
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 ANNEX  
 
 
I. HIGHLIGHTS OF THE EARLY SEPARATION PROGRAMME 
A. SUPPORT FOR AFFECTED STAFF  
1. Staff who are affected by structural reviews, displacement due to internal transfers or 
abolition of posts will henceforth be provided with: 
• A minimum period of three months in which to pursue opportunities and assess 
alternatives. 
• 3-4 weeks time off on official business w ithin the search period to prepare for 
and conduct the search and to explore the options. 
• Where not otherwise available during the search period, access to workspace, 
telephone and email. 
• In addition to the usual job search support, affected staff will be eligible on a 
discretionary and limited basis for specialized career counselling services. (These services will be focused on staff who requi re dedicated support to transition to 
employment elsewhere within the international organizations / UN system in 
Geneva and/or the external labour market). 
B. M
AIN TERMS AND PROCEDURES  
2. General :  The terms and procedures described expl ain how the agreed separations will be 
implemented in the WTO, in accordance with the Staff Rules and Regulations. 
3. Purpose:  The programme is intended to facilitate agreed separation when this is in the 
interest of both the WTO and the staff member. Prior ity is given to staff affected by restructuring, 
displacement or abolition of post. 
4. Applicability:  The programme is intended primarily for staff, who remain or become 
affected by organisational restructuring, displaceme nt (resulting from internal transfers or returning 
from leave without pay) or abolition of post. Also, st aff in the age range of 53-59 years with 15+ years 
of service will be eligible for consideration. 
5. Eligibility:  The programme will be open to regular staff with WTO Letters of Appointment, 
who either hold a regular contract or a fixed-term contract. 
6. Provisions for agreed separation:   The programme is a voluntary programme for "agreed 
separation".  Agreed separations are covered by Staff Regulation 10.3(c), under which the Director-
General has the authority to approve a separation when this would be in the interest of the 
organization and is not contested by the staff member. Where the separating staff member signs a certificate of no contest, the organization – on a discretionary basis and in accordance with the 
provision of Staff Regulation 10.6 may pay a termin ation indemnity not more than 50 per cent higher 
than that which would otherwise be payable under the Staff Regulations.  This is considered an 
"agreed separation" in the interests of the WTO. 
7. For separating staff with 15 or more years of service, this provides a maximum of 18 months 
of termination indemnity (12 months plus 50 per cen t), with lesser amounts for fewer years of service. 
 WT/BFA/W/137 
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 8. Flexible implementation options:   Although a lump sum payment of indemnities will 
normally apply, under the programme separating st aff may select instead among several special leave 
alternatives.  These alternatives permit termination indemnities to be paid over the period of special 
leave, thereby extending participation in the WT O Pension Plan and/or medical insurance scheme, 
which can be useful in reaching important age or c ontribution thresholds for benefits.  The duration of 
the selected special leave option will be establishe d so that the total cost to the WTO will be 
approximately the same cost of paying the entire termination indemnity as a lump sum. 
9. Other features:  The programme will also include the following: 
• Three-month notice period, either to be served, or paid in cash under certain 
conditions. 
• For staff affected by displacement/abo lition of post – provision of job search 
support, under specified conditions – specialized career counselling services to 
re-enter the external labour market. 
• As with normal separation from service, payment of accrued annual leave up to 
60 days, and separation grant and repatriation travel, where applicable. 
• Also as with normal separation from service, advice on the conditions under 
which carte de legitimation holders ma y qualify for convers ion of residence 
status in Switzerland. 
10. Applications:   The programme will be time bound.  To allow sufficient time for review and 
decision, staff affected by displacement/post aboliti on who wish to apply should do so ideally one 
month before the end of the three-month period of active job search (a date which would be indicated 
in a written communication to each of the affected staff members).  Other interested staff will be 
encouraged to apply as early as possible to have th e greatest possibility of acceptance.  There will be 
an on-line application form designed for this purp ose, and any queries, shou ld be submitted to the 
Human Resources Division (HRD). 
11. Decisions:   Separations under this programme are approved by the Director-General based on 
the recommendations of an advisory panel on separations which will be established by the 
Director-General, taking into account the interests of the WTO and the resources available for the 
programme. The recommendations will take into account  a "high", "medium" and "low" criteria to be 
established and presented to the Director-General .  Decisions will be ta ken and announced on a 
rolling basis.  The advisory panel should meet on a periodic basis and depending on the timing of 
meetings, decisions will normally be available about six weeks following receipt of application. 
12. Implementation:   For staff  affected by displacem ent or abolition of post, separations 
approved under the programme would normally take pl ace within three months of the notification of 
approval, and in any case no later than three months from the end of the search period, if the notice 
period is served.  If the separating staff member agr ees to leave within 30 days of being notified of 
approval (and this is agreed by the line management  where applicable), cash in lieu of notice can be 
paid.  Where the separating staff member is not affect ed by displacement or abolition of post, the last 
day of service may be after six months of notification,  if this is mutually agreed with the management 
of the unit/division. 
 
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