Question:

XYZ Textiles Ltd. terminated 4 workers for misconduct without compensation. Under ID Act, select the correct answer.

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Retrenchment = termination not due to misconduct.
Updated On: Oct 3, 2025
  • The termination does not amount to retrenchment, hence no compensation.
  • The termination amounts to lay-off, hence compensation will be awarded.
  • The termination amounts to retrenchment, hence compensation will be awarded.
  • The termination violated the ID Act, hence compensation will be awarded.
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The Correct Option is A

Solution and Explanation

Retrenchment excludes termination for misconduct. Since this was punishment-based, no compensation is payable.
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