The biggest difference between the two is that retrenchment targets people, whilst redundancy targets positions. A person cannot be declared redundant but a position which a person is holding can be declared vacant. It is possible to declare one position redundant and therefore only one employee loses his or her job.

Is redundancy same as retrenchment?

Separation Pay for Redundancy

Termination of Employment due to Redundancy would give higher pay compared to Retrenchment. Logically, Retrenchment is done by an employer who is encountering financial losses and is only terminating the employment of employees due save the company and other employees.

How much do you get paid when retrenched?

Upon retrenchment an employer must pay an employee severance pay equal to at least one week's remuneration for each year of continuous service with that employer.