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the termination of an individual's employment when the employer ceases trading or the job ceases to be required because of rationalization, change of product etc. When an employer decides to make part or all of a workforce redundant the European Collective Redundancies Directive requires that the workforce be consulted on the extent, distribution and rationale for redundancy. Advance notice must be given with the extent of this dictated by the number of planned redundancies. Consultation must take place with union representatives, specially elected employee representatives where a TRADE UNION is not present, or (exceptionally) directly with all employees.

Employees with more than two years' service are statutorily entitled to a redundancy or severance payment. For adult employees under 40 this is one week's pay for each year of service, for those of 40 plus it is one and a half week's pay for each year up to a maximum of twenty years. Many employers choose to make payments substantially above the statutory level (in some public sector organizations there are special schemes to support this) to sweeten the pill of redundancy.

Selection of employees for redundancy can be a traumatic process and, if the organization is to continue trading, needs to be conducted fairly if the morale of those remaining is not to be irretrievably dented. A favoured option is to seek voluntary recruits for redundancy among older employees, backed up by generous redundancy payments and possibly early access to pension benefits. An alternative method is ‘last-in-first-out’ (LIFO),i.e. those with shorter service are selected for redundancy. Whilst superficially fair the problem with this is that it potentially removes those young workers who have most to offer the organization in the long term.

Whatever the method chosen, redundancy is undoubtedly a distressing process for all those involved. Some more progressive organizations offer counselling services to aid adjustment and to rebuild confidence. Others, especially where very large numbers have been made redundant, have set up employment agencies in an attempt to find alternative work. Although trade unions sometimes declare their intention to fight redundancies, they and their members are generally unwilling to take any form of industrial action since this could imperil redundancy payments. Unions, therefore, usually come to devote their efforts to ensuring that individuals are treated fairly by those handling the redundancy process.

Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson


the loss of jobs by employees, brought about by company RATIONALIZATION and reorganization that results from falling demand or PRODUCTIVITY improvement. In the UK, adult employees under 40 years of age are entitled to redundancy or severance payment of one week's pay for each year of service, and for those over 40, it is one and a half week's pay for each year up to a maximum of 20 years. See UNEMPLOYMENT.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
Mehriban Aliyeva ordered an immediate resolution of the issue on the condition that the redundant employees` labor rights be restored and they be provided with jobs.
Palychata said that applying the software to securities trading means that 'existing industry players might be redundant.'
A Palace spokeswoman said costs were constantly reviewed and in "rare instances" staff were made redundant, but strongly denied claims of low morale.
Nicholson told MPs that while he wrote to bosses at the now defunct strategic health authorities (SHAs) around the country asking them to ensure those staff members who were made redundant were not rehired or were allowed to work as a consultant to NHS organisations for a minimum of six months, he conceded he had 'no legal power' to enforce his request.
"As a consequence, most unfortunately, 150 employees have been made redundant, with a skeleton staff numbering 14 retained to assist the administrators as they continue to pursue a sale of the business and assets, while taking steps to manage an orderly wind down.
You went on to ask what constitutes "redundant." To me that means any approach that isn't likely to be used because of other available approaches.
Summary: Up to 5,300 soldiers are to be made redundant from the Army in the summer as part of the latest round of cuts to the armed forces.
Despite reports that those preparing for service in Afghanistan may not be exempt in the latest tranche, Mr Francois confirmed that such personnel would again not be made compulsorily redundant.
The EU Council adopted, on 6 December, seven decisions mobilising a total amount of 24.3 million under the European Globalisation Adjustment Fund (EGF), providing support for workers made redundant in seven member states: 5.5 million for dismissed workers of the Swedish car manufacturer Saab; 5.3 million for former workers of the Finnish producer of amobile phones Nokia; 5.2 million for workers made redundant in the Austrian mobile social services sector; 2.9 million for dismissed workers of Nokia in Romania; 2.7 million for workers made redundant at Italian manufacturers of mopeds and motorcycles; 1.4 million for former workers of the Danish producer of printed circuit boards Flextronics; and 1.3 million for dismissed workers in the Spanish metal products sector.
By far the most common scenario is that of "redundant foreskin"--also often referred to as an "incomplete circumcision." This is a cosmetic issue, since an incomplete circumcision can result in the penis having neither a normal uncircumcised appearance nor a normal circumcised appearance, but rather something that is in between.
Whether those who have served or are serving in Afghanistan will be made redundant as a result of the Army restructuring?

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