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=m6DFEj
sVz9w
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?
