Remunerate retained staff? That's a travesty! (6)
I believe the answer is:
Here is my best explanation:
'a travesty' is the definition.
('parody' can be a synonym of 'travesty')
'remunerate retained staff?' is the subsidiary indication.
'remunerate' becomes 'pay' (I've seen this before).
'retained' indicates putting letters inside.
'staff?' becomes 'rod' (I've seen this before).
'pay' enclosing 'rod' is 'parody'.
'that's' is the link.
(Other definitions for parody that I've seen before include "Takeoff", "Skit", "Exaggerated imitation of a particular genre", "Burlesque", "Satire - burlesque", "Satirical imitation", "a lampoon or comic imitation", "Mockery", "Spoof, lampoon" and "Lampoon".)