Redundancy occurs when an employer terminates an employee's position because it is no longer required or the work can be done differently. To be considered a redundancy, the employer must have a genuine work-related reason for eliminating the position. Redundancies can happen when a business ceases operations, work requirements decrease, or the work can be done in a new way requiring different skills. When multiple employees are let go within a 30-day period, it is considered a collective redundancy. Redundancy pay is given based on an employee's salary and length of service to help offset the loss of employment. Employees can challenge redundancies if they believe the reasons were not genuine or the process was unfair.