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  2. Retrenchment in Labour Law involves letting go of employees and workers because of economic and business reasons, rather than due to a dispute between the company and the employee. This process requires consultation and government approval.
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    What is retrenchment in labour law?When a worker’s service is terminated due to ongoing health issues. In essence, retrenchment in Labour Law refers to the termination of an employee’s service for reasons such as company restructuring, downsising, economic challenges, technological advancements or discontinuation of a specific department or unit, among others.
    Which legal provisions govern the practice of retrenchment?There are a host of legal provisions which govern the practice of retrenchment. Section 2 (oo) of the Industrial Disputes Act, 1947 defines Retrenchment as - The definition of retrenchment was not included in the Industrial Disputes Act, 1947 in its original form. It was inserted by Amendment to the Act in 1953.
    What does retrenchment mean in India?The Industrial Dispute Act, 1947 deals with employment-related disputes in India and Section 2 (oo) of the Act states that ‘retrenchment means termination of service of a workman by an employer for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action.
    What are the exceptions to retrenchment under labour law?Section 2 (oo) of the Industrial Dispute Act, 1947, states the exceptions to the definition of retrenchment, which are as follows- Voluntary retirement: In case a workman or employee retires from his service voluntarily without any other reason, it is not considered retrenchment under labour law.
     
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