Dismissal, redundancy and employment law Cambridge IGCSE Business Studies revision

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In plain words

Losing a job can happen in two quite different ways. If the worker did something wrong, such as stealing, it is dismissal. If the job itself has disappeared, because a machine now does it or the orders have dried up, it is redundancy.

Laws protect workers in both cases, and in much else: pay, safety and fair treatment.

6 things to know

  1. Dismissal: employment is ended because of the employee's behaviour or inability to do the job.
  2. Redundancy: employment is ended because the job is no longer needed. It is not the employee's fault.
  3. A workforce may have to be cut after automation, a fall in demand, a factory closing or a merger.
  4. In choosing who to make redundant, a business may look at skills it will need in future, length of service, or ask for volunteers.
  5. Legal controls cover the contract of employment (pay, hours, holidays in writing), unfair dismissal, discrimination (on grounds such as gender, race, religion, disability and age), health and safety, and the legal minimum wage.
  6. For employers the laws add costs and procedures. In return they get safer, fairly treated and better-motivated workers, and avoid fines and bad publicity.

Tips and tricks

  • Redundancy is about the job, dismissal is about the person. If a question says "demand has fallen" or "new machinery", it is redundancy.
  • Laws affect both sides. For a full answer give the effect on the employer and the effect on the employee.
5 questions, about 2 minutes.

It lands in your notebook with its questions as flashcards.

Dismissal, redundancy and employment law: 5 questions and answers

These are the quiz’s questions. Do the quiz first, then come back here for the ones that got you.

  1. A factory installs robots and no longer needs twenty assembly workers. Their jobs end through
    • dismissal
    • redundancy (the answer)
    • resignation
    • promotion

    The jobs have gone. The workers have done nothing wrong.

  2. An employee is repeatedly caught stealing and loses her job. This is
    • dismissal (the answer)
    • redundancy
    • retirement
    • downsizing

    It is because of her own conduct.

  3. Which is covered by discrimination law?
    • paying workers on time
    • treating a worker unfairly because of their gender (the answer)
    • providing safety helmets
    • setting the hours of work

    Equal opportunities laws forbid unfair treatment on such grounds.

  4. What must a contract of employment include?
    • the firm's profit
    • the employee's pay and hours of work (the answer)
    • the names of customers
    • the prices of the products

    It sets out the terms on which the person is employed.

  5. Which is a benefit to an employer of obeying health and safety law?
    • higher costs
    • fewer accidents and lost working days (the answer)
    • more paperwork
    • lower productivity

    A safe workplace keeps people at work and working well.

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