Redundancy occurs when an employer eliminates a job role because it is no longer needed, often due to organizational restructuring, technological changes, or cost-cutting measures.
It may lead to employee layoffs, and in many countries, it requires compliance with labor laws regarding notice, severance pay, and fair selection criteria.

Handled poorly, redundancy can harm employee morale, damage employer reputation, and result in legal disputes.

Why Redundancy Happens

• Organizational Restructuring – Changing company structure to improve efficiency.
  
• Technological Advancements – Automation making certain roles obsolete.
  
• Cost Reduction – Cutting workforce to reduce operational expenses.
  
• Business Closure – Shutting down operations entirely.
  
• Market Decline – Reduced demand for products or services.
  

Best Practices for Managing Redundancy

• Follow legal requirements for consultation and notice.
  
• Apply fair and transparent selection criteria.
  
• Communicate decisions with empathy and clarity.
  
• Offer outplacement support and career counselling.
  
• Maintain detailed documentation of the process.

FAQs: Redundancy in HR

Q1: Is redundancy the same as termination?
A: No—redundancy is role-based, while termination can be due to individual performance or conduct.

Q2: Are employers required to offer redundancy pay?
A: In many jurisdictions, yes, but the rules vary by location and length of service.

Q3: Can redundancy be avoided?
A: Sometimes—through retraining, redeployment, or reduced working hours.

Q4: How is redundancy selection decided?
A: Typically based on criteria like skills, experience, and performance—not personal characteristics.

Q5: What’s the difference between voluntary and compulsory redundancy?
A: Voluntary redundancy is when employees choose to leave with a package, while compulsory is initiated by the employer.