Difference between Lay-off and Retrenchment

No	Lay-off	Retrenchment
1	Meaning   Lay-off means rendering a workman workless under certain circumstances beyond the control of the employer. In other words, lay-off means putting aside workman temporary.	Meaning “Retrenchment” means termination of service of a workman by the employer by any reason other than disciplinary action or punishment. In other words, if an employer discharges or removes any workman or staff member
2	Definition Lay-off is defined in Section 2(kkk) as follows - “Lay-off” (with its grammatical variations and cognate expressions) means the failure, refusal or inability of an employer on account of shortage of coal, power or raw materials or the accumulation of stocks or the breakdown of machinery 38[or natural calamity or for any other connected reason] to give employment to a workman whose name is borne on the muster rolls of his industrial establishment and who has not been retrenched.	Definition Section 2(oo) of the Industrial Dispute Act, 1947 defines “Retrenchment” as follows "Retrenchment” means the termination by the employer of the service of a workman for any reason whatsoever, otherwise than as a punishment inflicted by way of disciplinary action but does not include-  (a) Voluntary retirement of the workman; or  (b) Retirement of the workman on reaching the age of Superannuation if the contract of employment between the employer and the workman concerned contains a stipulation in that behalf; or (bb) Termination of the service of the workman as a result of the non-renewal of the contract of employment between the employer and the workman concerned on its expiry or of such contract being terminated under a stipulation in that behalf contained therein; or (c) Termination of the service of a workman on the ground of continued ill-health.
3	The employer-employee relations does not come to an end but is merely suspended during the period of emergency.	Termination by the employer of the service of workman

        Chapter V-A  Containing Section 25A to Section 25J of the Industrial Dispute Act, 1847 lays down the provisions relating to layoff and Retrenchment.