In the rudiments of employment law, redundancy – also referred to as retrenchment – arises when an employer discharged surplus labour.
The surplus may arise out of a sluggish demand for the products or services of the company, lack of raw materials and spares to continue production, inadequacy of cash due to the inability to cover production costs, change in technology and so forth.
In the banking sector, the use of technology has grown exponentially that the banks require less people to handle their operations. In fact, in some cases there are major branch realignments with many banks merging branches so as to remain profitable.
Of great importance is the fact that the surplus labour are terminated even though they are fit and willing to continue in their employment if their services was so required.