Redundancy Management

The process of handling job eliminations due to restructuring, technological advancements, or financial challenges while minimizing negative impacts on employees.
HR teams manage redundancies through fair severance packages, redeployment opportunities, and career transition support to maintain organizational reputation and employee trust.

What are the 5 stages of redundancy?

• Planning and consultation — assessing the need for redundancy and communicating with stakeholders
• Selection process — choosing which roles or employees are affected, based on fair criteria
• Individual consultation — meeting with affected employees to explain their situation and gather their input
• Confirmation and notice — confirming redundancy in writing and providing appropriate notice periods
• Support and transition — offering assistance, redundancy pay, and resources to aid their employment search or career change

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What is the concept of redundancy?

Redundancy occurs when a role is no longer needed due to business changes, whether it's restructuring, financial pressures, outsourcing, or a downturn in work. It’s not a reflection of an employee’s performance but a structural decision by the organization.

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How to calculate redundancy?

Redundancy pay is typically calculated based on:

• The length of service with the company
• The age of the employee
• The weekly pay rate or salary
  Usually, there’s a formula or policy (depending on country or legislation) that sets redundancy pay (for example: 1 week’s pay for each year of service).

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How to manage redundancy?

• Communicate honestly, transparently, and compassionately
• Provide proper consultation and support to affected employees
• Explore alternatives to redundancy (like transfer, reduced hours, or training for new roles)
• Support their future employment (with outplacement services or strong references)
• Ensure fairness and compliance with employment legislation
• Take care of the team’s morale and mental health during the process