Redundancy

Redundancy occurs when an employee (or a group of employees) is dismissed because they are no longer needed by their employer. The legal definition states that there are three sets of circumstances in which a redundancy can take place as follows:

  • Complete cessation of a business.
  • The shutting down of the employee’s place of work.
  • Reduction in the number of workers needed to do the employee’s job.

If the redundancy takes place for reasons other than those stated above, or if proper procedures are not followed, the employee may have a claim for unfair dismissal.

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