Which term is used when an employee's job is no longer required leading to their layoff?

Prepare for NCEA Level 2 Business Studies Test. Study comprehensively with flashcards and varied question formats, each offering hints and detailed explanations. Ready yourself for success!

The term "redundancy" is specifically used to describe a situation where an employee's job is no longer necessary due to various factors such as changes in the company’s operations, organizational restructuring, technological advancements, or other economic pressures. When a position becomes surplus to requirements, it leads to the layoff of the employee holding that position.

In this context, redundancy indicates that the employee's role has been eliminated, not due to any performance-related issues but rather as a strategic decision made by the company. This is a common practice in business management, particularly during periods of downsizing or when businesses are seeking to streamline operations for efficiency.

Other terms may relate to job changes or evaluations, such as "restructuring," which implies a broader organizational change rather than focusing solely on the elimination of individual positions, or "retrenchment," which often refers to broader cost-cutting measures that can lead to layoffs, but is not as precise in pinpointing the elimination of a specific job. "Reassessment" typically involves evaluating employee performance or business strategies but does not imply job elimination.

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