GENERAL KNOWLEDGE

Detailed explanation-1: -The principle of ‘last come, first go’ states that in the case of retrenchment, the employer has the power to decide which of the employees are to be retrenched.

Detailed explanation-2: -The Orissa High Court has held that the principle of “last come first go” cannot ordinarily be departed from by employers while retrenching labourers under the Industrial Disputes Act, 1947 (ID Act). While departing from the principle, it is a pre-condition that the employer has to record ‘reasons in writing’.

Detailed explanation-3: -The first-ever elementary step taken in terms of retrenchment is the turnaround. This looks into the problems from a lens favorable to both the company and its employees. This process primarily involves dissolving of redundant branches of the organization.

Detailed explanation-4: -So, retrenchment means termination of a worker’s services for any reason whatsoever, other than those specified in Section 2(oo). 1) There must be a termination of the service of a workman. 4) Otherwise than as by way of punishment inflicted by way of disciplinary action.