Retrenchment Compensation - Definition - Law Dictionary

Definition :

Retrenchment compensation, 'retrenchment com-pensation' is not a retirement benefit at all. As the expression 'retrenchment compensation' indicate it is compensation paid to a workman on his retrenchment and it is intended to give him some relief and to soften the rigour of hardship which retrenchment inevitably causes, Indian Hume Pipe Co. Ltd. v. Workmen, AIR 1960 SC 251 (253): (1960) 2 SCR 32. (Industrial Disputes Act, 1947, s. 25F)