Learn about the definition, requirements and exceptions of retrenchment in India under the Industrial Disputes Act, 1947 and other laws. Find out how to comply with the legal procedures and avoid disputes when terminating employees for any reason. Retrenchment refers to the termination of an employee’s service due to business reasons, such as cost-cutting, restructuring, or downsizing. It is different from other forms of termination because retrenchment is primarily driven by economic or operational needs rather than employee performance. What is Retrenchment? Retrenchment is a process of reducing employees by terminating them from the workforce. Organizations often have to take this decision due to following reasons like business downturns, restructuring, or the need to reduce costs. It mainly involves reducing the workforce due to downsizing the number of employees for balancing the operation of the business and maintaining the business profit. Retrenchment Strategy, The Industrial Dispute Act,1947 As per the Industrial ... Companies often fail to consider the legal requirements to be carried out before retrenching their employees. Read everything about retrenchment.
