Employee redundancy definition
Employee redundancy is a situation in which an employer no longer needs a role or a particular kind of work, which may result in an employee leaving the organization. Its legal definition and the process an employer must follow vary by jurisdiction.
What redundancy means for a team
A redundancy can follow a restructure, a site closure, a change in demand, or a decision to organize work differently. It concerns the need for work or roles; the circumstances and terminology vary across jurisdictions. HR and appropriate advisers should manage the employment process and consider any applicable alternatives, including redeployment.
Even when a role ends, some of its responsibilities may continue. Managers need to decide which work stops, which work transfers, and who has authority to make decisions after the transition. A handover makes those decisions visible to the people taking over.
Example: a regional office closes
A company closes a regional office and centralizes facilities management. The local coordinator's role is no longer needed, but supplier contracts, building access arrangements, and outstanding maintenance requests still need attention. The manager assigns each item to an owner, records deadlines and contacts, and confirms how urgent issues will be handled after the office closes.
Planning a respectful handover
Discuss the handover in a way that respects the employee and the circumstances of their departure. Agree on the time available and prioritize information the team needs to continue essential work: recurring commitments, open decisions, dependencies, key contacts, and known risks. Avoid asking the employee to include sensitive personal information or confidential employment discussions in operational records.
A manager should review the resulting handover document with the receiving owners, resolve gaps where possible, and confirm access through the organization's normal procedures. If there is little time for a handover, identify the highest continuity risks and document who will investigate them.
Related terms
Employee attrition describes a reduction in workforce size when roles remain unfilled. Workforce planning considers the people and capabilities an organization needs, while knowledge retention focuses on preserving useful knowledge through change.
Frequently asked questions
What is an example of employee redundancy?
A company closes a regional office and no longer needs its local facilities coordinator role. The employer reviews the work that will stop or move elsewhere and follows the applicable employment process.
Is redundancy the same as dismissal for poor performance?
Redundancy generally concerns a reduced or changed need for work, rather than an individual's performance. The legal distinction and required procedures depend on the jurisdiction.
What happens to an employee's work when their role is made redundant?
Some work may stop, while other responsibilities move to colleagues, another team, or a service provider. Managers should identify new owners and capture the information needed to continue essential work.