Redeployment, Dismissal and Redundancy (AQA A Level Business): Revision Note

Redeployment

• Redeployment is when an employee is moved from one role or department to another within the same organisation rather than being made redundant

The place of redeployment in the HR process

• It is often used when:

  • A job or department is closing, but the employee’s skills can be used elsewhere

  • The business restructures and wants to retain existing talent

  • There is a need to balance staff levels across regions or functions

Benefits of redeployment

• Retains experienced staff and reduces the cost of recruitment and training

• Maintains morale by showing commitment to employee wellbeing

• Increases flexibility by helping staff adapt to different roles

• Reduces legal risks and redundancy costs compared to laying employees off

Examples

• HSBC UK announced plans to cut head office roles in 2023 but redeployed hundreds of staff into customer-facing jobs in branches and digital support teams

• British Airways has offered redeployment into alternative ground-based or training roles during times of reduced flight demand

• Sainsbury’s has redeployed staff from closed Argos stores into supermarket roles or online fulfilment centres

The distinction between dismissal and redundancy

Dismissal

• Dismissal (firing or sacking) is the termination of employment by an employer against the will of the employee

  • Employees are usually terminated due to their misconduct (e.g. violating company policy) or poor performance

  • The employer may choose to dismiss them immediately (without notice or compensation) or provide a notice period which they can work out

Redundancy

• Employees are made redundant when the job is no longer available and the business reduces the size of its workforce

  • The termination is not due to any fault of the employee

  • The employer must follow certain legal procedures, including providing notice and paying redundancy compensation

Recent UK examples

• In December 2023, Nationwide Building Society informed 470 employees that they were at risk of redundancy

  • The changes were expected to ultimately affect roles in the retail operations and mortgages divisions

• In November 2023, Reach plc, owner of major UK newspapers including The Mirror and the Daily Express, announced that 450 jobs were at risk in the latest round of cuts, marking the third within a year

  • The redundancies were attributed to declining financial health, with the company's digital strategy faltering and revenue down significantly