what is retrenchment

what is retrenchment

1 year ago 53
Nature

Retrenchment is a term that can have different meanings depending on the context. Here are some definitions of retrenchment from various sources:

  • Military: Retrenchment is a technical term in fortification, where it is applied to a secondary work or series of works constructed in rear of existing defenses to bar the further progress of the enemy who succeeds in breaching or storming these).

  • Business: Retrenchment of employees is one of the ways companies use to terminate employees when the company is forced to downsize its number of employees. It is a process used by companies to reduce their workforce by terminating the employment of employees for reasons such as business downturns, restructuring, or the need to reduce costs.

  • Legal: In India, the Industrial Dispute Act, 1947 defines retrenchment as the termination of service of a workman by an employer for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action.

In general, retrenchment refers to a reduction or curtailment of something, such as expenses or the workforce. It is often carried out as a last resort when other measures, such as redeployment or retraining, have been unsuccessful in addressing the organizations needs. The process of retrenchment typically involves identifying the need for retrenchment, consulting with affected employees, establishing objective and non-discriminatory criteria for selecting employees to be retrenched, and providing support to affected employees.

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