2.1.4: Redundancy vs Dismissal
Cambridge 9609 | AS Level Human Resources | The HR Tribunal
DISMISSAL
Worker fired for incompetence or misconduct. The PERSON leaves, job remains.
REDUNDANCY
The JOB no longer exists (automation, closure). The person leaves, role eliminated.
The Legal Framework
DISMISSAL: When the Person Leaves
✅ FAIR DISMISSAL (Legal)
- Gross Misconduct: Theft, violence, fraud, serious safety breaches
- Capability: Inability to perform role after training/support provided
- Persistent Issues: Constant lateness despite warnings, repeated policy violations
- Legal Requirement: Loss of required license (e.g., driver loses driving license)
❌ UNFAIR DISMISSAL (Illegal)
- Discrimination: Pregnancy, race, gender, age, disability, religion, sexual orientation
- Whistleblowing: Firing someone for reporting illegal activity
- Union Activity: Dismissal for joining a trade union
- No Procedure: Firing without investigation, warnings, or appeal process
REDUNDANCY: When the Job Disappears
🙋 VOLUNTARY REDUNDANCY
Staff choose to leave in exchange for enhanced redundancy package.
- Pros: Maintains morale, no forced exits, legally safe
- Cons: Expensive, may lose best staff (they have other options)
⚠️ INVOLUNTARY REDUNDANCY
Business selects which staff to make redundant using objective criteria.
- Valid Criteria: Skills matrix, performance data, "last in first out" (LIFO)
- ILLEGAL Criteria: Age, gender, pregnancy, disability, union membership
- Impact: Lower morale, survivor guilt, potential legal challenges
The Key Distinction
DISMISSAL
"You are fired because of YOUR actions (or lack of capability). The job still exists for someone else."
REDUNDANCY
"Your job is eliminated due to BUSINESS decisions (automation, closure, restructuring). It's not your fault."
📚 EXAM STRATEGY: AO3 Analysis for 6-Mark Questions
When asked to "Analyse the impact of redundancy on a business," structure your answer as a chain:
Level 1 (2 marks): "Redundancy reduces costs because fewer wages are paid."
Level 2 (4 marks): "Redundancy reduces labor costs, which improves profit margins. However, remaining staff may experience lower morale due to survivor guilt and increased workload."
Level 3 (6 marks): "Redundancy cuts labor costs (e.g., 50 jobs @ $40k = $2M saved annually), improving short-term cash flow. However, if voluntary redundancy is used, high-performers may leave (they have other job options), damaging productivity. Involuntary redundancy using LIFO criteria avoids discrimination but may eliminate recent digital skills. The net financial benefit depends on whether the business can maintain output with fewer staff or if productivity losses exceed wage savings."
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