What Constitutes A Collective Redundancy?

The term Collective Redundancy implies the termination of employment by the employer on grounds of redundancy. In simpler terms - the termination of employment due to lack of work engaged by the employer.

Moreover, for there to be a Collective Redundancy, the number of employees being made redundant shall be:

• 10 or more in establishments employing 20 to 99 employees,
• 10% or more in establishments employing 100 to 299 employees and,
• 30 or more in establishments employing 300 or more.

The law implies that in case of a Collective Redundancy the rule to be followed is that of 'last in first out'. Hence, irrespective of the level of performance of the employee, it is the last employee engaged by the employer who is to be made redundant in such instances. However, there is one exception - in case of an employee being related to the employer by consanguinity or affinity up to third degree, the employer may choose to hold on to said relative as an employee