What is the meaning of retrenched employee?

Retrenchment is the termination of employment initiated by the employer through no fault of and without prejudice to the employees. It is an act of the employer of dismissing employees because of losses in the operation of a business, lack of work, and considerable reduction on the volume of his business.

What is the meaning of Retrenche?

transitive verb. 1a : cut down, reduce. b : to cut out : excise. 2 : to pare away : remove.

What is another word for retrenchment?

Some common synonyms of retrench are abbreviate, abridge, curtail, and shorten.

What is a retrenchment benefit?

Retrenchment benefits are payments given to employees to compensate them for the loss of employment.

How can we avoid retrenchment?

1. Freeze all recruitment for vacant posts.
2. identify employees who may be retrained to fill vacant posts.
3. reduce the use of consultants.
4. reduce all casual labour.
5. re-deploy employees from indirect support positions to positions directly related to production operations and sales.

What is retrenchment cost?

While effecting retrenchment of the workmen, it is obligatory on the part of the employer to pay retrenchment compensation at the rate of 15 days wages (for every completed yaer) to be calculated at the last drawn salary of an employee.

What is a retrenchment strategy?

 A strategy used by corporations to reduce the diversity or the overall size of the operations of the company. This strategy is often used in order to cut expenses with the goal of becoming a more financial stable business.

What are the effects of retrenchment?

Retrenchment can have a traumatic and emotional impact on the still-employed as well as those who have been laid off. The remaining employees may feel demotivated and insecure which can result in lower productivity within the organisation – especially if the retrenchment process hasn’t been handled appropriately.

What is the procedure of retrenchment?

Retrenchment is the process by which staff is reduced to cull redundant employees and reduce the wage bill. The Labour Relations Act 1 , permits employers to dismiss employees for operational requirements. Structural reasons relate to the redundancy of posts consequent to a restructuring of the Employer’s enterprise.

How is retrenchment paid?

Severance pay – a retrenched employee must at least be paid 1 week’s pay for each completed year of ongoing service. if the employee was employed for more than 6 months but less than 1 year, s/he must be paid 2 weeks’ notice pay; if the employee was employed for more than 1 year, s/he must be paid 4 weeks’ notice pay.

Can you refuse retrenchment?

What is clear from the judgment is that an employer, in the context of a retrenchment exercise at least, may dismiss employees for refusing to accept a change to terms and conditions of employment, provided of course that the employer can demonstrate that there is a genuine operational need to change terms and …

Can I refuse retrenchment?

What are the right retrenchment procedures?

The retrenchment procedure as laid down in the Labour Relations Act (LRA) must be followed properly and in good faith by the employer. The employer must also prove that he/she has shared with the targeted employees (or their representatives) all documentary and other information pertinent to the retrenchment.

What is an example of retrenchment?

Retrenchment is defined as cutting back or a reduction. An example of retrenchment is a company laying off employees to get back within budget. A reduction or curtailment; often referring to a business or government agency cutting back operations or laying off workers.

What are the advantages of retrenchment?

Advantages of retrenchment include reduced costs, improved efficiency, improved competitiveness and reduced reliance on the markets. Retrenchment increases profits for shareholders and creates a strategy to survive economic downturn.

What are the rules for retrenchment?

Who is eligible for retrenchment?

An employee will be considered eligible for retrenchment compensation on the satisfaction of the following conditions: The employee must be a workman. The employee must have offered continuous service for a period of 240 days in the previous 12 months, which will be calculated as a year of continuous service.

What is the legal retrenchment package?

What is a fair retrenchment package?

What is the notice period for retrenchment?

If employed for less than six months – one week’s notice; if employed for more than six months but not more than one year – two weeks’ notice and if employed for more than a year – four weeks’ notice. Domestic and farm workers, who have been employed for more than six months, must receive four weeks’ notice.

Retrenchment is a form of dismissal due to no fault of the employee, it is a process whereby the employer reviews its business needs in order to increase profits or limit losses, which leads to reducing its employees.

What is the word retrenchment mean?

: reduction, curtailment specifically : a cutting of expenses.

Is retrenchment good or bad?

The Good side of Retrenchment is that it offers the company and staff an opportunity to part company on good terms. The company gets to reduce its staff levels and the staff leave with a redundancy package. For those staff that have been with the company for a long period it would be a sizable sum of money.)

What is the synonym of retrenchment?

In this page you can discover 13 synonyms, antonyms, idiomatic expressions, and related words for retrenchment, like: decrease, abatement, deduction, curtailing, thriftiness, frugality, reduction, economy, curtailment, downsizing and deindustrialisation.

How is retrenchment compensation calculated?

Condition precedent to retrenchment Calculation of average pay is done by dividing the last drawn monthly salary by 25 and then multiplying the dividend by 15 for every completed year of continuous work.

What is retrenchment and layoff?

Retrenchment means involuntary separation of an employee due to the replacement of labour by machines or the close of the department. The layoff is an action step, whereas retrenchment is a business strategy to reduce company’s expenses. The layoff is defined in section 2 (kkk) of the Industrial Disputes Act, 1947.

Which is the best definition of the word retrenchment?

Definition of retrenchment : reduction, curtailment specifically : a cutting of expenses Examples of retrenchment in a Sentence

What does it mean to be retrenched by an employer?

Retrenchment means termination of service of a workman by the employer by any reason but other than punishment or disciplinary action.

What does it mean when a local government retrenches?

retrenchment. In retrenchment, central government may seek to limit the total expenditure of all local governments for economic stabilization. Experts see a major retrenchment coming from consumers. The downturn in business has resulted in many retrenchments. Facing retrenchment can be a frightening experience.

What is the difference between liquidation and retrenchment?

Liquidation strategy is the extreme level in the retrenchment strategy where you permanently shut down the business and sell all of your assets. Liquidation is the final option of the problems of any business because it has serious outcomes. It results in the form of saying no to every potential opportunity and firing all the employees.