Redundancy occurs when an employer needs fewer employees to do work of a particular kind. It is about the role, not the person. Legitimate redundancy is generally a valid reason for termination, though specific procedures and entitlements apply.
Valid Redundancy Situations
Common redundancy triggers include business closure or relocation, introduction of technology replacing manual work, organizational restructuring, economic downturns reducing workload, and outsourcing of functions. The redundancy must be genuine, not a pretext for removing specific individuals.
Selection Criteria
When multiple employees do similar work, employers must select fairly who to make redundant. Common criteria include skills and qualifications, performance records, length of service, and disciplinary history. Selection must not discriminate against protected groups.
Consultation and Notice
Many jurisdictions require consultation with employees or their representatives before finalizing redundancies. This allows exploring alternatives like redeployment or voluntary redundancy. Notice periods and redundancy payments typically apply, with amounts often based on length of service.