Menu Close

What is retrenchment in industrial dispute act?

What is retrenchment in industrial dispute act?

Section 2(oo) of the Act states that “retrenchment means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action, but does not include – (a) voluntary retirement of the workman or.

What is the procedure for retrenchment under Industrial Dispute Act 1947?

Where any workman in an industrial establishment who is a citizen of India, is to be retrenched and he belongs to a particular category of workmen in that establishment, in the absence of any agreement between the employer and the workman in this behalf, the employer shall ordinarily retrench the workman who was the …

What is retrenchment explain?

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 retrenchment in law?

Retrenchment means termination of service of a workman by the employer by any reason but other than punishment or disciplinary action. In simple words, if an employer discharges or removes any workman or staff member on the ground of surplus labor or staff, but not as a disciplinary action it is called retrenchment.

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.

What is the correct procedure for retrenchment?

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.

Which of the following is not covered in a retrenchment?

Retrenchment doesn’t cover the following: Voluntary retirement of the employee. Employee’s retirement at the age of superannuation. Termination due to non-renewal of the contract.

What are the legal requirements for retrenchment?

The retrenchment package The employer is legally obligated to pay retrenched employees “severance pay”, being one week’s pay for each completed year of service. This amount may be higher if the employee’s contract says so, or if the industry rate is higher due to a Collective Agreement.

What are the advantages of retrenchment?

While being retrenched is a financial blow, it legally allows you to access many benefits. This includes better tax rates, waivers on premiums and even debt repayments. If you are retrenched, you can take up to R500 000 tax free from a combination of your retrenchment package and pension.

What is retrenchment explain with example?

Retrenchment is defined as cutting back or a reduction. An example of retrenchment is a company laying off employees to get back within budget.

What is unfair retrenchment?

It is a process wherein the employer reviews the business needs, profitability and other operational factors in order to increase profits or limit losses. However, if an employer doesn’t provide the proper reasons and doesn’t follow the proper procedures, the CCMA or Labour Court can consider the retrenchment unfair.

How does retrenchment work during lockdown?

During the national lockdown, section 189 of the Labour Relations Act 66 of 1995 will continue to govern the procedures that must be followed for a fair and lawful retrenchment. Retrenchment is a form of dismissal due to no fault of the employee.

What is retrenchment under the Industrial Disputes Act, 1947?

RETRENCHMENT UNDER THE INDUSTRIAL DISPUTES ACT, 1947 Presented by: Haimanti Paul LL.B 6 TH SEM. 2. INTRODUCTION • MEANING OF RETRENCHMENT : • Retrenchment means the discharge of surplus labour or staff by the employer for any reason whatsoever, otherwise than by way of punishment inflicted as a measure of disciplinary action.

When was lay off, retrenchment and closure added to the Constitution?

Special Provisions relating to lay-off, retrenchment and closure under Industrial Disputes Act. Chapter V-B was added in the Industrial Disputes Act, 1947 through amendment under Article 32 of the Constitution.

What is the meaning of the term retrenchment?

During the process, the establishment reduces outgoing money or expenditures or redirects focus in an attempt to become more financially solvent. The definition of the term was not included in the Industrial Disputes Act, 1947 in its original form. It was inserted by Amendment to the Act in 1953.

What are special provisions of Industrial Disputes Act 1947?

Under Section 25-K of Industrial Disputes Act, 1947 the application of Chapter V-B dealing with special provisions relating to lay-off, retrenchment and closure is mentioned. The provision mentions the area where the Chapter V-B of the Industrial Disputes Act, 1947 applies.