Posted in Human Resource Terms, Total Reads: 1160

Definition: Redundancy

Redundancy is one of the reasons for the dismissal of a person's employment under fixed-term contract. When a work does not exist anymore or has got diminished, the employee may be removed of his employment which is under a fixed-contract, called as Redundancy.  The non-existence may be attributed to lack of projects or funds for research have stopped flowing into the system etc.

A redundancy usually happens because of discontinuance of business on or off the employee's site or a reduction of work or relocation of  the business to a new location or change in the business processes leading to the removal of employment. This usually impacts the morale, productivity and motivation of other employees as well.

The redundant employees can claim for a compensation for the dismissal of their employment under strict time limits. The notice of redundancy to the employees has to be made at least one week prior to the removal in case the employee has worked for a period of 1month-2years, at least two weeks prior to removal in case the employee has completed 2years and one additional week for each additional year of service for a maximum of 12 weeks in total.


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