Labour & Service Law
Retrenchment
The termination of a workman's employment by the employer for reasons other than misconduct, such as surplus staff or business reasons.
Labour law requires employers to follow specific conditions before retrenching a workman — including notice or pay in lieu, retrenchment compensation, and in some cases prior government permission — failing which the retrenchment can be challenged as illegal.
Retrenched workmen with the requisite length of service are also generally entitled to be considered first for re-employment if the employer starts hiring again for similar roles.
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