Question

______ means permanent termination of an employee’s services by an organisation due to economic reasons.

Options

• Resignation

• Compulsory retirement

• Voluntary retirement

• Retrenchment

Answer 1

Retrenchment means permanent termination of an employee’s services by an organisation due to economic reasons.

Explanation:

Retrenchment means permanent termination of an employee’s services by the organisation due to economic reasons like surplus staff, cost-cutting, or reduced demand, not because of misconduct or voluntary choice.