Redundancy Meaning: Definition, Causes & HR Best Practices
Redundancy refers to the termination of an employee’s position because the role is no longer required—not due to performance or misconduct. Common causes include restructuring, technological change, downsizing, or business relocation. Employees rarely assigned to redundancy retain their rights to notice, fair selection, and compensation.
Key Reasons for Redundancy
- Business restructuring or mergers
- Automation making certain roles obsolete
- Financial pressures or cost-cutting measures
- Scaling back after project completion
- Office closures or relocations
Types of Redundancy
- Compulsory redundancy: Employer-initiated dismissal, selected through objective criteria such as tenure or skills
- Voluntary redundancy: Employees opt-in for exit packages
- Collective redundancy: Multiple positions eliminated simultaneously, often requiring group-level consultation
Legal & HR Best Practices
- Ensure the position—not the person—is genuinely redundant
- Use objective selection criteria to avoid bias
- Conduct consultations before issuing notices
- Respect statutory notice periods and severance obligations
- Offer support such as career counseling or redeployment options
- Avoid redundancy to mask performance-related issues
