Termination of employment because a position is no longer needed — due to restructuring, automation, or economic conditions. Different from dismissal for misconduct. Employees are typically entitled to a redundancy package.
Redundancy (also called retrenchment in South Africa and Zambia) is the termination of employment for economic or operational reasons rather than for any fault of the employee. The position itself becomes unnecessary, not the person. **Common causes of redundancy:** - Technological change or automation eliminating the role. - Business restructuring or reorganisation. - Closure of part or all of the business. - Financial difficulty requiring headcount reduction. **Key principles across jurisdictions:** **South Africa** (retrenchment): Governed by Section 189 of the Labour Relations Act. Requires consultation, fair selection, severance pay of at least 1 week per year of service, and notice. Challengeable at the CCMA. **Kenya**: Governed by Section 40 of the Employment Act 2007. Requires written notice to the Labour Commissioner, consultation, and redundancy pay of at least 15 days' pay per year of service. **Zambia**: Governed by Section 36 of the Employment Code Act 2019. Requires consultation and a package of at least 2 days' pay per year of service. **Philippines** (retrenchment/redundancy): Governed by Articles 298–299 of the Labor Code. Requires 30 days' notice to DOLE and separation pay of ½ to 1 month per year of service depending on the authorised cause. Redundancy must be genuine — an employer cannot dress up a personal dismissal as a redundancy to avoid the procedural requirements of dismissal for misconduct.
A company automates its accounts payable function. The three employees in those roles are made redundant. If the company does not consult with those employees, apply fair selection criteria, or pay the statutory package, the redundancy is procedurally unfair — regardless of whether the business decision to automate was genuine.
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