Legal Glossary
Voluntary Retrenchment - What Is Voluntary Retrenchment?
Definition
When the employee enters into an agreement with his/her employer to be retrenched, not to claim unfair dismissal and not to claim additional pay, in return for payment of a retrenchment package which includes his/her severance pay, leave, other pay s/he is legally entitled and additional benefits. An agreement will come into force on acceptance of the voluntary retrenchment offer.