When does an employer need Government permission to retrench?
- A factory, mine or plantation with not less than three hundred workers on average per working day in the preceding twelve months, or a higher number if notified, needs it s. 77(1), (3).
- It must also give three months’ notice or wages instead s. 79(1).
- If the Government does not reply within sixty days of the application, permission is deemed granted s. 79(4).
- A retrenchment without applying, or after refusal, is illegal, and the workers keep all their benefits s. 79(7).
Last checked 1 Nov 2026 · written from the official text · not reviewed by a lawyer. This explains the law in general and does not decide your case.
What the Labour Ministry says
- “Industries having 300 workers on any day of previous year will need prior permission from the Government.” Q12, Myths and Realities of the IR Code, 23 Dec 2025: official copy · our copy
The Code's own test differs: workers employed on an average per working day in the preceding twelve months [s. 77(1)]. The Code prevails.
This is the Ministry's explanation, not the law. Its FAQs and Handbook say the Codes prevail.