Practical Legal Guidance

Retrenchment

The termination of a workman's employment by the employer for reasons other than punishment.

Detailed 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.

Authoritative Sources & Provenance

Relevant Legislation

  • The Industrial Disputes Act, 1947

Related Concepts

General legal information for reference only, reviewed for accuracy but not a substitute for advice from a qualified advocate on your specific facts.

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