Share on LinkedInShare on LinkedIn

ARTICLE · 18 JULY 2022

Market Intelligence Thought Leadership Award Winner

What is the difference between redundancy and retrenchment?

When a role is made redundant (no longer required), the employee could be redeployed or retrenched (lose their job).

AustraliaEmployment and HR

Redundancy and retrenchment are two terms that are sometimes confused by employers and employees.

Redundancy occurs when a specific role is no longer required because of operational changes within a business. Once a position is redundant, the employee holding that role can either be redeployed (moved into another job for the same employer) or retrenched (lose their job).

Redundancy

We often see employees referred to as being made redundant, but a more accurate description is that the job the employee was employed to perform has become redundant, not the employee.

Many factors can contribute to changes in operational requirements, including the state of the market in which the business operates or steps taken to improve efficiency by installing new processes, equipment, or skills. For example, when a machine or new technology can replace a job currently performed by an employee. When a business identifies jobs that are no longer required due to operational

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

See more popular content from