Distinguish between Lay-off and Retrenchment.

Ans. Difference between Lay-off and Retrenchment- following are the differences between lay-off and retrenchment

1. In lay-off the relation between the employer and t worker is continuously maintained but retrechment such a process whereby this relation between the emp loyer and the worker is breached and the continu comes to an end.

2. For lay-off it is not essential to give any information to th aggregate Government but for retrenchment it is essentia to give prior notice to the Government and preceden conditions have to be complied with.

3. Lay-off has a similar effect on all the employees an therefore all are similarly effected by if but retrenchmen has a specific principle and retrenchment according t that alone is considered constitutional or legal; tha principle has comprehensive acceptance. Retrenchmen should always be made on the principle: Last come firs

go.

4. In lay-off there is no special provision for compensation but in retrenchment in almost every particular condition compensation is payable.

5. In lay-off the workman inspite of remaining off duty re mains employed but in case of retrenchment the workers can have opportunities of re-appointment provided that there arise some vacancies in the establishment.

6. In lay-off when the badli workers are re-employed they are not entitled to compensation but in retrenchment the badli worker has to be paid compensation.

7. Both have significant differences in their causes. Fof example the cause of retrenchment can be the permanent closure of a department of an establishment, excess of workers etc. But for lay-off these general reasons don't exist. It happens on conditon when the employer is unable to restore normal conditions. For example, breakdown of machinery, installation of new machinery, shortage of raw-material, fuel or electric supply shortage.