Cambridge O Level Business Studies · Syllabus 7115 · People in Business
Redundancy
What is Redundancy?
The ending of a person's employment because the job they were doing is no longer required by the business, for example after automation, falling demand, restructuring, relocation or closure. Redundancy concerns the job, not the individual's performance, and must never be described as a penalty for working badly. Where some but not all holders of a role must go, selection should use fair, transparent and job-relevant criteria, and the business may have to make redundancy payments.
This definition is part of the People in Business chapter in Cambridge O Level Business Studies.
Common mistakes with Redundancy
- "He was made redundant because his work was poor." Fix That is a dismissal for capability. Redundancy happens because the job is no longer required. Why It is the single clearest definitional test in this topic, and it is directly examinable as a "state the difference" question.
Questions students ask about Redundancy
What is the difference between dismissal and redundancy?
Dismissal ends someone's employment because of that individual: their conduct, capability or a breach of their contract terms. Redundancy ends employment because the job itself is no longer required, for example after automation, falling demand or restructuring — it is about the job, not the person's performance, and must never be described as a penalty for working badly. Where only some job-holders must go, selection should use fair, job-relevant criteria.