The biggest difference between layoff and retrenchment is that layoff is volatile in nature, i.e. employees are recalled, once the period of layoff is over while retrenchment is non-volatile i.e. that involves full and final termination of services. The employment contract is terminated with the employees by the employer, due to three major reasons which are: (i) the organization is going through the lean period, (ii) initial faulty hiring, (iii) employee shows deviant behavior, which affects … [Read more...]