Voluntary vs Involuntary retrenchments

  • Voluntary redundancy takes place when the company, wishing to downsize workforce, offers it to all employees and those who wish to leave opt for it.
  • Compulsory redundancy is a situation where company decides on its own which are the employees it wishes to leave.

You shall not be entitled to the Involuntary Retrenchment benefit in the following circumstances:

    • where impending Involuntary Retrenchment was known to you at the Effective Date whether an official written or oral notice had been given or not;
    • where your employment was terminated because of your misconduct, deficiency in the performance of your duties, resignation or voluntary redundancy;
    • where your employment was terminated at the end of a fixed-term contract, unless the fixed-term contract was for at least twelve (12) months with the same employer and:
  • (i) it was renewed at least once; or
  • (ii) you were originally employed on a permanent basis;
  • where your employment was terminated at the end of Temporary Work;
  • if you are Self-Employed;
  • for any period for which you are entitled to receive payment in lieu of the termination notice; and
  • where the Involuntary Retrenchment occurs within ninety (90) days of the Effective Date