Retrenchment
The termination of a workman's employment by the employer for reasons other than punishment.
In Simple Terms
Losing your job not because you did something wrong, but because the employer no longer needs the position.
Detailed Legal Meaning
Retrenchment is the termination of a workman's service by the employer for any reason other than as a punishment inflicted by disciplinary action, and does not include voluntary retirement, retirement on reaching a prescribed age, or non-renewal of a fixed-term contract on its expiry. Retrenchment of a workman satisfying prescribed conditions of service generally requires notice and compensation as conditions precedent.
Relevant Acts & Sections
- Industrial Disputes Act, 1947Search on India Code ↗