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Definition of Redundancy:

Redundancy is a form of dismissal that occurs when a job no longer exists or is not required anymore. Following redundancy, the job/position disappears from the company. This may be because the company is downsizing, closing down, or simply, the work is not required any longer. Keep in mind that if the position still exists, and the person is replaced, then it is NOT redundancy. 

What are the reasons for redundancy?

Redundancy has less to do with the employees efficiency. It is usually because of things beyond their control, such as: 

Types of redundancies:

Redundancy and Layoffs:

Layoffs are more of a temporary suspension of employment. Employees can return to work after a period (the duration of which can be undefined). 
On the other hand, redundancy is permanent dismissal of the employee. There has to be a fair, transparent procedure where the employee can learn the selection procedure and have a space to ask questions and address disagreements. 

Selection process and procedure for redundancy:

Your employer may include qualifications and skills as part of their reasons, but it should not be based on these alone. Other reasons include:

If redundancy is the way to go ahead, you need to notify the concerned authorities which includes workers' union representatives. Let them know how you would handle the procedure and then consult with the employees. Hear their queries and respond to their questions and provide a fair and transparent procedure. 

Provide the reason for redundancy, the number of employees being dismissed, the payments or incentives involved and so on.