Retrenchment Dilemma: If Two Workers Perform Equally, Who Should Stay?

X and Y, both workers, have a Joining Date of 01-03-2013. X's card number is 500 and Y's card number is 501. Their performance is the same. If management decides to retrench a worker, who will it be?

Retrenchment Principles Under the Industrial Disputes Act, 1948

In India, the Industrial Disputes Act of 1948 provides for retrenchment. Generally, the principle of "Last in, First Out" applies. In a given case where the date of joining is the same, employees will be distinguished based on the employee code. The one with the code 501 will be junior to the one with the code 500.

It is important to note that while this rule is commonly followed, it is not an absolute principle. The law also states that if the skills and competence required to operate the business are not possessed by those who are senior as per the "Last in, First Out" rule, the employer has the right to retain those who possess the necessary skills and may retrench those seniors who do not have the required skills.

Regards,
Shailesh Parikh

[Phone Number Removed For Privacy Reasons]
Vadodara, Gujarat