HR Glossary

What is Retrenchment?

The involuntary termination of employees due to economic, operational, or structural reasons unrelated to individual performance, commonly used in South and Southeast Asian employment law as the equivalent of layoffs or redundancies.

Why it matters in hiring

Retrenchment comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with R

• Retention Bonus
• Retention Package
• Retention Strategy
• Retirement and Re-employment Act (Singapore)
• Return of Company Property
• Right to be Forgotten
• Right to Work Check
• ROE - Record of Employment (Canada)

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