The Grueling Task Of Redundancy
Whenever we hear the term Redundancy, it sends shivers across
the corporate world. This is because no one, neither the employers nor the employees like the concept and
practice of redundancy. It is the least popular exercise that anyone in the corporate world could wish of,
because it involves a lot of financial and emotional pain.
The main cause behind redundancy is often cited as an economic slowdown. This happens when businesses
start to suffer from falling sales and their profits start falling as a result. This can mean huge losses for
businesses, especially those with a lot of staff, for the fixed cost that goes off in terms of salaries thus
becomes unbearable. Certain businesses therefore start to downsize and make their employees redundant. Redundancy
can also be caused due to a shift in the economic structure of an economy.
If an economy is labor intensive but a shift towards using technology takes place, the economy becomes
machine intensive and most of the labor force is made redundant. Redundancy can also happen due to the fact that a
certain business is being closed off. No matter what the cause behind the redundancy is, the Redundancy Procedure
is always grueling and tiresome.
In order to carry out a proper Redundancy Procedure, an employer has to go through a lot of difficulties. The
employer has to first notify certain authorities that it wishes to exercise a downsizing plan and plans to make a
certain section of its workforce redundant. This is then followed by detailed meetings with the trade union that is
representing the employees so identified and the employer cannot move further until he has convinced the trade
union that the Redundancy Procedure will be carried out fairly and without bias to anyone.
After such proceedings have taken place, the employers must call a
meeting of the section of employees that it wants to be made redundant and inform them of the decision
that it wishes to take. Then, in consultation with the employees, the employer must arrive at criteria
that are suitable enough to be applied to individual employees for redundancy to take place. Thus, when
the Redundancy Procedure starts to take place, it must be monitored to be fair, consistent and
It is the duty of the employer to provide all redundant employees
with a redundancy pay that they are entitled to if they are more than eighteen years of age and have
served the employer for more than two years in a continuous employment. Such a pay is given to the
employee in a lump sum and is calculated on the basis of the age band of the employee, the weekly wage
that he or she used to draw and the complete years that he or she remained in
There is another duty of the employer, that it would also help the
employees to cope with the stress and emotional fatigue that results due to the implementation of a
strict Redundancy Procedure, and to help the employee find alternative employment for him or herself.
Having said this, there is no doubt that the process of redundancy is liked by no
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