Is it feasible to retrench employees in business?

[Starmix]

The answer is yes! It is feasible to retrench employees in business, but it is a complex issue with legal, ethical, and practical considerations. If a business is facing a financial difficulty due to a recession, decreased demand, or other economic factors, retrenchment might be necessary to reduce costs.

If a business moves its operations to a new location, it might not be feasible for all employees to relocate, leading to retrenchment. In an effort to improve profitability, a business owner might decide to eliminate certain positions to reduce operational costs.

Retrenchment can have a significant impact on employees and their families, leading to financial hardship, stress, and loss of morale. Retrenchment is feasible but should be a last resort, carefully considered, and implemented in compliance with legal and ethical requirements.

 

[Augusta]

Yes, it is feasible to retrench employees, but only when a business has genuine operational reasons such as economic, technological, or structural needs

 

[Starmix]

If the business is about to shrink, there is no reason to retain employees who are not regular, they can compromise the future of the business. So, retrenchment is normal as long as legal.