Possible Reasons for dismissal :
-Performance of employee below expectations
-Employee not following company rules (ex: Hours, breaks)
-Employee may have pattern of poorly explained absenteeism
-Other issues which contradict employee work contract
Procedure needs to be followed, employer may need to issue both verbal and written warnings.
Redundancy occurs through no fault of the employee. A redundant worker is not replaced, the position has disappeared due to :
-Fall in demand for company's products
-Need for restructure due to external changes (Social, Legal, Economic, Political, Technological)
-Outsourcing overseas a particular job (strategic decision)
When made redundant, an employee will normally be entitled to a redundancy payment, based on years of service to the business.
Also known as Retrenchement, Downsizing is a brutal policy, removing layers of middle and line managers from organizatons. It is a justified way to garantee the organization's survival.
- - Layers of management stripped, may hinder effective operation and good customer service
- -Experienced managers could be rehired by competitors
- -Workers who remained would lack managing, training them could cost +
- -Restructuring can cost millions $$$, sometimes + expensive than without Downsizing (short term)
- -Job insecurity for those remaining can affect current employees, increased workload and low motivation level, reducing efficiency.
- -When economic conditions become better, how would the gaps in management be filled in?