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:IncompetenceMisconductGross MisconductLegal 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?