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What is redundancy

Updated: Jun 18, 2023

Redundancy involves terminating employment as they are no longer needed by the organization usually due to cost-cutting activities due to an economic recession or introduction of new technology making a business capital-intensive (factor substitution).


They can be either voluntary or compulsory (involuntary) depending on the amount of workforce the firm needs to reduce. If the amount is large, the firm will adopt a compulsory approach. Redundancy are not considered as dismissals, as such redundant employees are given monetary compensation according to their past contribution to the firm.


Dismissals is a penalty from disciplinary issues the employee has, that resulted to employment termination. The disciplinary issues may involve;


  1. Gross misconduct by the employee

  2. Incompetence

  3. Illegal or law-breaking activities

These employees must undergo a disciplinary procedure or process before a dismissal can happen.


RELATED CONCEPT


  1. Dismissals


PAST YEAR QUESTIONS



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