Question

Retrenchment means that temporary removal of an employee from services due to economic reasons in an going concern.

Answer 1

Retrenchment means the permanent removal of an employee from service by an organization due to economic reasons such as cost reduction, redundancy, or business downsizing, even though the business is a going concern (still operational). It is not due to any fault of the employee and is generally carried out following proper legal procedures like notice and compensation.