Retrenchment is a form of dismissal due to no fault of the
employee, it is usually due to unavoidable economic considerations.
Retrenchment as a dismissal does not essentially relate to the
conduct or capability of the work. Retrenchment is also known as
downsizing, because an employer often resorts to retrenchment to
reduce costs and spending to ensure economic survival. One of the
requirements of retrenchment are that the employer must give fair
reasons for making the decision to retrench and follow a fair
procedure when making such a decision or the retrenchment may be
considered unfair. The Labour Relations Act 1, permits employers to
dismiss employees for operational requirements. These are defined
as requirements based on economic, technological, structural or
similar needs of the Employer. Another commonly used alternative to
employer petitioning for volunteers who desire to take early
retirement to do so. This has some advantages as it provides
opportunities for
