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Date: 31 January 2014 To: All affected employees NOTICE OF RETRENCHMENT AT 31 January 2014 As you are aware discussions have been held with personnel / representatives since the 16th of January 2014.
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SUBSIDIARIES FAQ
What is retrenchment? Retrenchment is a form of dismissal due to no fault of the employee, it is a process whereby the employer reviews its business needs in order to increase profits or limit losses, which leads to reducing its employees.
Definition of Retrenchment of employees is terminating an employee due to the surplus of labor or incapacity of employees to match the performance standards of the company.
The employer serves written notices both to the employees and the DOLE at least one month prior to the intended date of retrenchment; 3. The employer pays the retrenched employees separation pay equivalent to one month pay or at least ½ month pay for every year of service, whichever is higher; 4.
Types of Employee Termination Voluntary Termination. In this type of termination, the worker takes the initiative to leave the company. ... Involuntary Termination. Involuntary termination refers to an event wherein the employer removes a worker from employment. ... Employment at Will. ... Mutual Termination.
There are two types of employment termination first is termination by employer and the second is voluntary resignation or termination by employee.
An employee is presumed to have been retrenched if the employer cannot show a plan to fill the vacancy any time soon. Termination is the termination of an employment relationship which includes retrenchment but also on other grounds such as poor performance or misconduct.
Normally Termination is for Disciplinary grounds, in which the company will send the person on the same day of issue of letter and pay for the Notice Period. The Retrenchment means sending out a person from the employement with notice period service, may be on completion of work, on redundancy, on slow down, etc.
Retrenchment is the termination of a permanent or contract employee's (minimum six-month term) employment due to redundancy or reorganisation of the employer's profession, business, trade or work.
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