Which term describes the process of ending an employee’s contract due to the role no longer being needed?

Boost your IGCSE Business Studies score by focusing on Section 2 – People in Business. Use flashcards and multiple-choice questions with explanations to prepare for your exam!

Multiple Choice

Which term describes the process of ending an employee’s contract due to the role no longer being needed?

Explanation:
Redundancy is when a job is no longer needed, so the employer ends the employee’s contract. This happens when the business restructures, introduces new technology, or faces a downturn, causing a particular role to disappear rather than reflecting the employee’s performance. It’s about the job existing or not, not the person’s conduct or capability, which is why it’s the correct term here. Dismissal would be for reasons tied to the individual’s behavior or performance, not because the role itself is redundant. Induction training is for new staff to learn about the job and the company, not for ending employment. Part-time employment describes the number of hours or the type of contract, not the reason for termination.

Redundancy is when a job is no longer needed, so the employer ends the employee’s contract. This happens when the business restructures, introduces new technology, or faces a downturn, causing a particular role to disappear rather than reflecting the employee’s performance. It’s about the job existing or not, not the person’s conduct or capability, which is why it’s the correct term here.

Dismissal would be for reasons tied to the individual’s behavior or performance, not because the role itself is redundant. Induction training is for new staff to learn about the job and the company, not for ending employment. Part-time employment describes the number of hours or the type of contract, not the reason for termination.

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