What is considered redundancy?

Asked by: Juston Ledner  |  Last update: June 18, 2025
Score: 4.7/5 (58 votes)

In the workplace, redundancy refers to the process when employers have to let go of one or more employees dueto circumstances unrelated to job performance or behavior.

What is an example of a redundancy?

Written down – You may have heard the phrase “Write this down” or “It's written down”, but when something is written it has been taken down. There is no need for you to add the word down to it. Still remains – “Yet she still remains” this phrase is redundant because remains means that something is still there.

What are the 3 types of redundancy?

The statutory definition of “redundancy” set out in the Employment Rights Act 1996, an employee's dismissal must be “wholly or mainly attributable to”:
  • Business closure (closure of business altogether)
  • Workplace closure (one of several sites, or relocation to new site)
  • Reduction of work of a particular kind.

Is redundant the same as being fired?

Redundancy happens when your job disappears. It's not the same as being dismissed from your job for other reasons. When you're made redundant, you've done nothing wrong and no one is questioning your ability to do your job.

What is redundancy in the workplace?

Redundancy is the state of being redundant, or extraneous. In the context of human resources, redundancy is the condition of having too many employees doing the same job. This can be caused by organizational downsizing, the retirement of older employees, or the transfer of employees to other departments.

Redundancy and your rights explained

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What is considered for redundancy?

You must be selected for redundancy in a fair way, for example because of your level of experience or capability to do the job. You cannot be selected because of age, gender, or if you're disabled or pregnant. If you are, this could be classed as an unfair dismissal.

What is the difference between redundancy and layoff?

The difference between redundancy and layoffs

Layoffs can either be permanent or temporary depending on the state of the company. Similarly, redundancies can also occur as a result of a lack of work, but they can also occur due to other situational factors such as business termination or relocation.

Is redundancy the same as termination?

Redundancy occurs when an employer either decides they no longer need an employee's job to be done by anyone, or the employer becomes insolvent or bankrupt, and terminates their employment. The job itself, not the employee, becomes redundant.

Can my employer make me redundant?

Your employer has a right to make redundancies, but they must use fair reasons when they choose who to make redundant. You can challenge your redundancy if your employer chooses you for a reason that's either: 'automatically unfair'

Can I get severance if I was fired?

A terminated employee may be entitled to more than the minimum amount of termination notice or pay required under employment standards legislation. This is often referred to as severance pay. Severance pay is determined under common law and not required under the Employment Standards Code.

How do you determine redundancy?

The formula for calculating your redundancy payments is:Base rate of pay x redundancy pay period = redundancy payYour redundancy pay period is a formally assigned period of time reflecting your years of continuous service at the company.

How much is redundancy pay?

Your employer must give you: 1.5 week's pay for each full year you worked from age 41. 1 week's pay for each full year you worked when you were between 22 and 40. half a week's pay for each year you worked when you were between 17 and 21.

What are the 5 stages of redundancy?

Basically, there are five main stages to consider during the redundancy process:
  • Stage 1: Preparation. ...
  • Stage 2: Selection. ...
  • Stage 3: Individual Consultation. ...
  • Stage 4: Notice of Redundancy and Appeals. ...
  • Stage 5: The Termination Process.

What is redundancy in layman's terms?

In layman's terms, 'redundancy' refers to the state of not being useful. However, in the corporate domain, redundancies are the process of removing employees who are technically unnecessary for the company. Mostly, redundancy is considered when the company is going through a rough patch financially.

What is an example of a genuine redundancy?

A genuine redundancy occurs when the employer has made a decision that the job no longer exists and terminates the employee's employment. A payment for a non-genuine redundancy is taxed as part of the employee's ETP.

What defines work redundancy?

A genuine redundancy is when: the person's job doesn't need to be done by anyone. the employer followed any consultation requirements in the award, enterprise agreement or other registered agreement.

Is it better to quit or be made redundant?

If you've worked for your employer for over 2 years you're usually better off waiting to be made redundant, as you'll probably get a redundancy payment. If you want to stay with your employer, they might offer you a new job.

How to prove redundancy?

What counts as genuine redundancy
  1. the business is failing.
  2. the business, or part of it, has stopped operating (often called becoming insolvent or going bust)
  3. your skills are no longer needed.
  4. your work is being done by other people, after a reorganisation.
  5. the business, or the work you're doing, moves to another location.

What are my rights when my job is eliminated?

If you've lost your job, you have certain rights, such as the right to continue your health care coverage and, in some cases, the right to unemployment compensation.

What's the difference between being fired and being made redundant?

Redundancy is a form of termination caused by changes in the business, while dismissal is a form of termination caused by employee misconduct or poor performance. Is redundancy the same as being fired? No, redundancy is not the same as being fired.

What defines workplace redundancy?

Redundancy in the workplace refers to roles, responsibilities, or positions within a company that are no longer vital to operations. This occurs when certain jobs are no longer adding value or teams are restructured in a way that makes specific roles obsolete or duplicative.

What to say when being made redundant?

State the reason why the redundancy occurred, share your successes in the role before your redundancy, then make a more positive comment on the opportunity it created for you and how you believe you could add value in this particular role.

What is redundancy called in the USA?

“Fired” means you lose your job because the company didn't like something you did. The American equivalent of “to be made redundant” is “to be laid off.” That is about the company's business decision, not about the employee's performance.

Can a company lay you off without severance?

There is no requirement in the Fair Labor Standards Act (FLSA) for severance pay. Severance pay is a matter of agreement between an employer and an employee (or the employee's representative).

How to identify redundancy?

Ask yourself if the word repeats or contradicts another word, if it states something that is obvious or implied by the context, and if you can remove it without changing the meaning of your sentence. If the answer to any of these questions is yes, then you have a redundant word that you can eliminate.