Redundancy
The elimination of a position when it is no longer required by the organization.
Also: retrenchment · layoff
Definition
Redundancy occurs when an employer eliminates a role because the work is no longer required, the business is closing or relocating, or restructuring has made the position unnecessary. It is distinct from dismissal for performance or conduct reasons. Legal requirements around redundancy typically include a defined consultation period, consideration of alternatives to redundancy (redeployment), and payment of statutory or enhanced redundancy pay. Poorly managed redundancy can lead to legal claims and reputational damage.
Example
“When the company automated its accounts payable process, three roles became redundant, and the HR team followed the statutory 30-day individual consultation process and paid statutory redundancy to all three affected employees.”
Synonyms
- layoff
- retrenchment
- downsizing
- position elimination