Redundancy

Redundancy is the process of terminating employees due to business reasons, most often tied to poor economic conditions: a job category becoming unnecessary or significantly reduced, a lack of projects or funding, business relocation, or the business shutting down altogether.

Redundancies can be voluntary or forced. If voluntary, employees take the option when it is offered to them. If forced, the company has to decide who will be made redundant, often using a method known as "last in, first out."

Redundancies are usually preceded by consultations where employers, employees, and other stakeholders work together to find a way to save the role, whether through new opportunities or restructuring.

Employees who are made redundant can claim compensation for the loss of their job, though this usually has to be done within strict time limits.