Multiple choice

'A's services were terminated without complying with retrenchment compensation provision:

  1. A is entitled to reinstatement without back wages

  2. A is entitled to back wages

  3. A is entitled to retrenchment compensation

  4. A is entitled to reinstatement and back wages as determined by the Court
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

When an employee's services are terminated without paying the mandatory retrenchment compensation under the Industrial Disputes Act, the proper remedy is reinstatement with back wages. Courts have held that retrenchment without compensation is illegal, and the appropriate relief is to order reinstatement and compensate for the period of wrongful termination with back wages as determined by the court.

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