How retrenchment differs from termination?

How retrenchment differs from termination?

Retrenchment takes place due to economic reason as surplus staff, poor demand of products and economic slow down while termination takes place on disciplinary grounds, illness, retirement and winding up of a business.

In the retrenchment employer it is compulsory for an employer to give three months notice before retrenching the worker and prior approval from the government, while in termination no need to give any prior intimation or any permission from the government.