Dismissal and Redundancy

Introduction The HRM department has the crucial role of attracting and recruiting workers It also has to ensure that the termination of employment contracts can be terminated in one of four situations

Four Situations Dismissal Redundancy Retirement Resignation

Dismissal Dismissal means the termination of a workers employment due to incompetence or a breach of contract Reasons include: Incompetence Misconduct Gross Misconduct Legal requirements

Unfair dismissal Unfair dismissal occurs when an employee is dismissed without a valid reason Two main causes of unfair dismissal include: Discrimination: An employer may discriminate against an employee on the basis of gender, race, age and religion Constructive dismissal: Forced into resigning from their position

Redundancy Redundancy occurs when the employer can no longer afford to employ the worker or when the job ceases to exist Two main ways this can be done: Voluntary Redundancy: This takes place when the employer asks for volunteers to be laid off Compulsory redundancy: This takes place when the employer has to choose which workers to make redundant

Methods of Redundancy The LIFO method (Last In First Out) whereby the last person to be hired is the first to go Retention by merit method where the least productive workers are made redundant first http://www.youtube.com/watch?v=m6DFEjsVz9w

What are the effects of redundancy? Human Costs Societal Costs Economic Costs

Questions Is redundancy a desirable thing? Name a scenario where unfair dismissal may occur? Which method of redundancy would you say is most effective?