Hi,
Retrenchment is a different procedure all to gether and has no relevance to employee being on fake medical leave.
If you are thinking of terminating the services then,
Kindly follow the procedure as under.
1) If it is proved by records/ witness that the employee is on fake medical leave / feigning sickness, issue a letter to appear for a medical examination before the panel / doctors decided by your company.
2) In the examination the claim of sickness along the supporting documents if any submitted by the employee can be verified and a written opinion from the doctors/ panel can be obtained.
3) Based on the above issue a show cause notice and proceed with the disciplinary actions like enquiry, second show cause and termination.
4) Or If the employee is not a workman under the ID act, you can staright way ask him to report for medical examination and on finding his claim of sickness to be false can be issued a letter of trmeination.
5) IF the employee being not a workman and if does not appear for the medical examination also, then you may send a termination letter to his permanent address with specific justification for termination.
kind regards
Dayanand L Guddin