Retrenchments and components of remuneration

INTRODUCTION

For various reasons, employers are compelled to review staffing levels and to terminate the employment of some employees in order to effect savings. This form of termination is known as retrenchment. Employers various reasons for retrenchment would include, recession, technological change, unionisation, disinvestment, transfer of the business or decentralisation (Rycroft and Jordan, 1992). This form of termination has social and economic ill effects than other forms of dismissal, where for the retrenched worker the loss of the job often means the disappearance in to the large mass of the unemployed. For the employer, on the other hand, at the time of recession, to retrench is often the only way to ensure economical survival. Retrenchment on the grounds of economic needs affects employees, which are economically active and may have rendered impeccable service to their employers. For these reasons, many countries require that retrenchment should not be resorted to until t...