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Section : What is redundancy?
Domain : Human Resource Management
Classification : Not Identified
Text Content
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. Redundancy can happen when the business:
- introduces new technology (for example, the job can be done by a machine)
- slows down due to lower sales or production
- closes down
- relocates interstate or overseas, or
- restructures or reorganises because a merger or takeover happens.