Termination of employment on the grounds of redundancy arises where an employee’s contract is terminated in a bid to reduce the workforce.
Redundancy is the involuntary and permanent loss of employment caused by excess of man power. Redundancy arises where the termination of employment is part of a reduction in the workforce.
Termination of employment on the grounds of redundancy is a unique procedure whereby an employee is quietly and lawfully relieved of his post. It is a mode of removing an employee from service by declaring his post redundant.
Some of the reasons an employer may rely on the grounds of redundancy to terminate an employee’s contract is reorganization, unproductivity, financial crises, ill-health, retrenchment etc. Where an employer relies on this ground to terminate the contract of employment, the burden of proof rest on such employer to satisfy the employee and the court on the reasons in support of his action.
Further, where the contract of employment states various conditions that should be complied with upon termination of an employee’s contract such terms and conditions must be substantially complied with. Lastly, all terminal benefits that have accrued to the employee during the pendency of the employment must be duly paid and failure can result in the employee’s right to seek redress in court.
Oluwatobi Adetona Esq. is a private legal practitioner based in Lagos, and can be contacted via her email-