This factsheet was last updated in April 2013.
What is redundancy?
A genuine redundancy arises only when either there has been or there is going to be:
- a cessation of business
- a cessation of business at the employee’s site
- a reduction or cessation of work.
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.