Key Difference Between Layoff and Retrenchment
Key Difference between layoff and Retrenchment The key difference between layoff and retrenchment is that a layoff is a temporary occurrence where employees can potentially be rehired, while retrenchment is a permanent end to employment. Employers are permitted to terminate employees for three main reasons: When the organization is in financial difficulties When a hiring decision is taken incorrectly When an employee’s misconduct negatively impacts the overall workplace Various methods, such as layoffs, voluntary retirement schemes (VRS), retrenchment, and discharges, are employed for involuntary separations. Numerous individuals have an incorrect assumption that layoffs and retrenchments are identical, but this is not correct. Refer to the article to gain further insight into the distinctions between these two. The definition of layoff Laying off an individual entails either temporarily or permanently terminating their employment. This action is usually taken by a c...
