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RETRENCHMENT definition: 1. a situation in which a government, etc. spends less or reduces costs: 2. a situation in which…. Learn more. Companies often fail to consider the legal requirements to be carried out before retrenching their employees. Read everything about retrenchment. The term Retrenchment in India means permanent termination of the employment of the employee by his employer. Understanding the differences between layoff and retrenchment to understand the basic concepts related to labour laws.
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