Retrenchment

Was your retrenchment fair?

You were retrenched and doubt that the reason or the selection was real.

For people seeking legal representation. For general information, please use our guides and tools.

Was your retrenchment actually fair?

Fairness rests on two separate questions, and both must hold up. The first is whether the redundancy was genuine, meaning the role really disappeared and the reason was not invented to remove one person.

The second is whether the way people were chosen was reasonable and explainable. Last In First Out is the usual starting point, and an employer who departs from it needs sound reasons.1

What does a genuine redundancy look like?

It involves a role, team or function reduced for a real operational reason. Three signs are worth questioning:

  • the retrenchment targets one specific person
  • the role is renamed and refilled soon after
  • the reasons shift when you ask about them

The employer must still prove the dismissal was for just cause if you challenge it.2 Ask in writing why your role was chosen and what criteria were used.

What if the explanations do not match?

Compare how the announcement was handled, including whether affected colleagues got the same explanation you did. Different explanations in the same round of retrenchment are worth comparing carefully.

Keep the conversation factual and respectful, and keep your own notes separate from theirs. Your account should reflect what you were told.

What should you do if you suspect it was not fair?

Write down the reason given and any selection criteria you were told. Check whether the company is hiring for similar roles, since retrenchment while a company keeps hiring is a pattern worth reviewing.

Read how Last In First Out selection is meant to work to compare with your situation. If you want a lawyer to act, an employment lawyer can weigh the reason and the selection method together and take a claim forward if there are grounds.

If you were retrenched and doubt the reason or the selection, an independent employment lawyer can review your facts and take a claim forward if you have grounds.

For people seeking legal representation. For general information, please use our guides and tools.

First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.

Common questions

Does my employer need a real business reason to retrench?

Yes. Retrenchment should address a genuine redundancy, such as a role or department no longer needed, not remove one person under the label of restructuring.

What if only I was retrenched from my department?

Retrenching one person can still be genuine, but it draws closer scrutiny of the reason and the selection method. Ask in writing for the criteria used to select you.

Does my employer have to follow Last In First Out?

Last In First Out is the usual starting point, not an absolute rule, and an employer can depart from it with sound reasons. What matters is whether a reasonable, explainable method was used.

What if the company is hiring for a similar role soon after?

Document that timing closely, because it can undermine the claim that your role was redundant. Save any job postings or announcements you find.

Sources

  1. Last In First Out is the conventional principle for selecting who is retrenched, and an employer who departs from it must be able to show sound reasons. Richard Wee Chambers (accessed 2026-09-22)
  2. The burden falls on the employer, not the employee, to prove the dismissal was for just cause or excuse. Mah Weng Kwai & Associates (accessed 2026-09-22)

If you were retrenched and doubt the reason or the selection, an independent employment lawyer can review your facts and take a claim forward if you have grounds.

For people seeking legal representation. For general information, please use our guides and tools.

First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.