Redundancy | Meaning and Definition

What is redundancy?

Redundancy is the condition or situation in a company when the employees working in the organization are asked to leave or are laid off from the organization specifying various business reasons behind this step, including the poor economic condition. The other reasons included in the list for taking these steps are lack of funds, lack of work, the closing of the business, shifting of the business, etc. During the COVID 19 pandemic, the redundancy rate increased, and many people were removed from jobs and were left unemployed. This shows that poor economic conditions and lack of various resources forced the company to take this step.

The condition of redundancy is not always forced but is also sometimes voluntary. When the employee takes the step voluntarily, the company provides or offers incentives and compensation to retain them.