redundancy

Loss of a person's job because the job no longer exists. This may occur because the business is shrinking in size or going bankrupt, for example, owing to a recession in the economy. The firm may have introduced labour-saving technology so that fewer workers are now needed to produce the same output as before. The firm may be changing its product mix, stopping or reducing production of one line but expanding elsewhere. The government provides a minimum standard of redundancy pay through the national insurance fund. Some companies may pay redundancy rates well above the minimum. How much workers receive depends on age, weekly wage, and number of years of service with their present employer.