What do you mean by lay off? How is it different from Retrenchment?

What do you mean by lay off? How it is different from Retrenchment?

Layoff is a temporary removal of an employee from the organization due to reasons which are not in the control of an employer. It takes place due to Global competition, reductions in product demand, changes in technologies, or mergers and acquisitions. When an employee is laid off his services are not utilized.

While the retrenchment is the permanent termination of an employee’s services due to economic reason may be surplus staff, poor demand of products, economic slow down etc.

In the lay off employee gets only fifty percent of his normally eligible total basic wages plus DA during the lay off period.

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