- a cessation of business
- a cessation of business at the employee’s site
- a reduction or cessation of work.
Predictions that the number of redundancies in the UK would rise sharply during the credit crunch (particularly in finance and the construction sectors) have been substantiated by the figures from the Office for National Statistics. The impact of the economic slowdown has also been demonstrated by fewer job vacancies.
Redundancy is one of the most traumatic events an employee may experience. Announcement of redundancies will invariably have an adverse impact on morale, motivation and productivity. The negative effects can be reduced by sensitive handling of redundant employees and those remaining.