It occurs when the employee is asked to leave the business because they are not able to do the job. The job still exists and the employee is replaced.

• Dismissal

• Redundancy

• Resignation

• Retirement

It occurs when the business no longer needs the job and so the employee doing that work is asked to leave.

• Redundancy

• Resignation

• Retirement

• Dismissal

A compensation for an employee paid by the business after asking such employee to leave as the business no longer needs the job.

The managers want to make the business smaller and more efficient, therefore reducing the need for jobs.

• Downsizing

• Closure

• Automation

• External events

‘Where the employee is asked to leave because their behaviour is unreasonable or because they cannot do the job.’ What is this sentence defining?

• Dismissal

• Resignation

• Retirement

• Redundancy

Ankit works as a dyer for a textile manufacturer in Udaipur, India. He has been told that he is being made redundant. The factory is investing in new machinery, which can dye four times as much cloth as Ankit can by hand. What is the reason for Ankit’s redundancy? (Give a one-word answer.)

Which of the following is not a factor to consider when making a specific employee redundant?

• The amount of profit the business has made

• The employee’s history in the business

• The skills that would be needed by the business

• The cost of the employee’s wages/salary

The Sec3 Café has decided that it needs to make one of its supervisors redundant to save costs. There are three supervisors: Nicole, Deven and Cheysar.

Nicole has worked for the Sec3 Café since it opened eight years ago and has never had a day off sick. However, because of her experience she does have the highest salary.

Deven has been working for the café for just over one year, and he has taken around 25 sick days in that time. He has the lowest salary of all three employees.

Cheysar has been working for the café for three years and has taken eight sick days. He does have the middle salary but he is willing to take a pay cut.

Which supervisor should be made redundant?

• Deven

• Nicole

• Cheysar

• Ankit

Either the whole business closes (due to bankruptcy, for example) or the manager closes part of the business to save costs.

• Closure

• Downsizing

• Automation

• External events

Managers decide to replace people with machinery to reduce costs or improve efficiency.

• Automation

• Closure

• Downsizing

• External events