Redundancy, retrenchment and lay-off

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While the terms ‘redundancy’ ‘retrenchment’ and ‘lay-off’ are used interchangeably, they nevertheless have distinct legal connotations.  Lay-off means the suspension of an employee’s employment contract arising from the company’s temporary or long-term business strategy or economic conditions. It is a mere suspension of the employee from employment for a certain specified period of time.  During the current Covid-19 pandemic, there is temporary inactivity and thus, it is a common industrial practice to lay-off part of the labour force because of not much work to warrant that many workers. If the employee is laid off due to temporary diminution in the particular kind of work done by him, and subsequently re-engaged without claiming the lay-off benefits payment under the Employment (Termination and Lay-Off Benefits) Regulations 1980, it will be considered that there is no break in…