Question

Give two points of difference between retrenchment and layoff.

Answer 1

	Basis	Retrenchment	Layoff
1.	Nature of separation	Permanent termination of an employee due to surplus staff or economic reasons.	Temporary separation due to a lack of raw materials, power, or market demand.
2.	Possibility of re-employment	Employee is not expected to be re-employed unless rehired.	The employee is expected to be recalled when the situation improves.