BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The Industrial Dispute Act, 1947 deals with employment-related disputes in India and Section 2(oo) of the Act states that ‘retrenchment means termination of service of a workman by an employer for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action.

Detailed explanation-2: -the act of removing a worker from a job as a way of saving the cost of employing them: Some firms are using retrenchments as a cost reduction measure. This resulted in the retrenchment of 40, 000 public servants. (Definition of retrenchment from the Cambridge Business English Dictionary © Cambridge University Press)

Detailed explanation-3: -Normally Termination is for Disciplinary grounds, in which the company will send the person on the same day of issue of letter and pay for the Notice Period. The Retrenchment means sending out a person from the employement with notice period service, may be on completion of work, on redundancy, on slow down, etc.

Detailed explanation-4: -A layoff is temporary in nature and usually happens when an employer is unable to continue employing workers for a short period. Retrenchment refers to a situation where the employer removes his employees in order to increase profits and decrease losses.

Detailed explanation-5: -Job losses / redundancy programmes. Product / market withdrawal. Disposal of business unit. Scaling back planned capital investment.