Exit Policy Exit policy refers to the policy regarding theretrenchment of surplus manpower resultingfrom restructuring of industrial units

s or theworkers becoming unemployed by the closureof sick units. need for exit policy Surplus Manpower :-There is disguisedunemployment if some labor employed in anenterprise can be withdraw without adverselyaffecting the production . In sellers market which existed in India underthe protected economic system the costs of surplus manpower employed by thecompanies could be passed on to theconsumers by way of high prices.