The Relationship between Employment Contracts and Redundancy Management on Selected Construction Companies in Rivers State

Abstract: This study explores the relationship between employee contracts and employee redundancy management in construction companies in Rivers State. The predictor variable is employment contract, while the criterion variable is employee redundancy management. The study aims to achieve seven specific objectives, answer seven research questions, and test seven null hypotheses. The moderating role of organizational culture, particularly the human resource policy, is examined in the relationship between employment contract and redundancy management. The research design employed is correlational, and the population consists of employees from construction companies. A total of seventeen construction companies were included, resulting in a population of seven hundred and eighty employees from various positions. The accessible population for the study was determined to be two hundred and sixty-four employees using the Taro Yemen formula. Primary data was collected through structured questionnaires. Three types of analyses were conducted: primary analyses involving percentages and frequencies, descriptive analyses employing means and standard deviations to analyze respondents’ questionnaire responses, and secondary analyses utilizing Spearman rank correlation coefficient to test the research hypotheses. Based on the results obtained, the study concludes that there is a strong and positive relationship between permanent employment contracts and employee redundancy management in construction companies. Additionally, a positive relationship exists between fixed-term employment contracts and employee redundancy management. However, casual employment contracts have a negative impact on redundancy management in construction companies in Port Harcourt. In other words, redundancy management is influenced by permanent and fixed-term employment contracts. Organizational culture, specifically the human resources policy, moderates the relationship between the two key variables, with a correlation value above average. Based on the findings, the study recommends that construction companies involve all stakeholders in the planning and implementation of redundancy processes, considering each party’s contribution to the success of the exercise for the overall benefit of all parties involved.