What redundancy means

Redundancy is the legal term used to describe the termination of employment of employees when:

• the job no longer needs to be done (because demand for product and services has diminished)
• costs need to be cut by reducing headcount
• the business is moving location or is closing altogether

Redundancy grounds have to be identified correctly, and an employer that can quantify its reasoning will be better placed to defend its position in the event of litigation.

Confusion often exists about the meaning of redundancy - for instance it does not have to do with the performance or conduct of an employee.