Business – 2.1 HRM – Redundancy and dismissal | e-Consult
2.1 HRM – Redundancy and dismissal (1 questions)
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Answer:
- Redundancy occurs when an employee’s role is no longer required by the employer, typically due to organisational change, technological advancement, or a downturn in business.
- Voluntary redundancy – the employee chooses to leave in exchange for a redundancy package. Example: A company offers a voluntary redundancy scheme to senior managers to reduce costs, and several managers accept the offer.
- Involuntary redundancy – the employer selects employees for redundancy without their consent, usually based on objective criteria such as length of service or skill set. Example: A manufacturing firm closes a production line and selects workers with the least seniority for redundancy.