Companies often fail to consider the legal requirements to be carried out before retrenching their employees. Read everything about retrenchment. Learn about the meaning, exceptions, reasons, requirements, procedure and criteria of retrenchment in labour law in India. Retrenchment is the termination of an employee's service for economic or business reasons, not for disciplinary action. 1) Meaning of Retrenchment Retrenchment means termination of service of a workman by the employer by any reason but other than punishment or disciplinary action. In simple words, if an employer discharges or removes any workman or staff member on the ground of surplus labor or staff, but not as a disciplinary action it is called retrenchment. 2) Definition of Retrenchment : The Definition of the term Retrenchment as given in Section 2 (oo) of the Industrial Dispute Act 1947 is exhaustive and ... RETRENCHMENT definition: 1. a situation in which a government, etc. spends less or reduces costs: 2. a situation in which…. Learn more.
