Retrenchment Rule

Hi All,
can you please share your experience with regard to retrenchment rule,
from the last 3 year our company is facing financial crises pls guide me can we retrech some employee from our org if yes what its procedure/rule
Regard
Akhil

Dear Akhil
Give some more details about your organization regarding strength of employees, nature of work, etc. so that our members can reply.
Some general rules to be followed while retrenching the employees are
1. Last joined employees must be retrenched first and the first joined employee will be retained.
2. If the last joined employee is having skill which is not available with the old employee, then you can retrench the senior employee and retain the newly joined one.
3. Give them notice period / pay, leave encashment/pay, retrenchment compensation, etc. as per their eligibility.

Sir,
total 46 employee is working in our org,
pls clarify can we retrench the employee if yes what its procedure,