Section 79 - Conditions precedent to retrenchment of workers to which Chapter X applies

Retrenchment conditions under Industrial Relations Code require notice, prior permission, and prescribed compensation entitlements for workers.

Conditions for retrenchment require three months' notice or wages in lieu and prior permission from the appropriate government; failure to obtain permission renders retrenchment illegal and entitles workers to statutory benefits, with permission deemed granted if no decision is communicated within sixty days. Employers must apply stating reasons and serve workers; the government may grant, refuse, review, or refer the matter to a tribunal which must decide within thirty days. Permission orders are final and binding for one year but may be reviewed or exempted for exceptional circumstances. Retrenched workers are entitled to compensation of fifteen days' average pay per completed year of service (pro rata for excess of six months).