Retrenchment Benefits

Employment

Retrenchment benefits are payments an employer may give when a job is made redundant, for example due to restructuring or downsizing. It is separate from salary in lieu of notice. Under prevailing norms, employees with at least two years of service are generally eligible, and the amount is typically negotiated, commonly around two weeks to one month of salary per year of service depending on the company's financial position and industry practice. Employers are also expected to notify the authorities of retrenchment exercises. Specific eligibility and amounts are subject to the latest rules and your contract.

Retrenchment Benefits

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