Embarrassed about fatigue, gave up work (7)
I believe the answer is:
retired
'gave up work' is the definition.
(I've seen this before)
'embarrassed about fatigue' is the wordplay.
'embarrassed' becomes 'red' (I've seen this before).
'about' is an insertion indicator.
'fatigue' becomes 'tire' ('tire' can be a synonym of 'fatigue').
'red' enclosing 'tire' is 'RETIRED'.
(Other definitions for retired that I've seen before include "Went to bed or gave up work" , "out of office?" , "Put out to pasture" , "Withdrawn from active participation" , "Turned in" .)