Which type of dismissal occurs when an employee's position is eliminated due to no fault of their own?

The correct answer is redundancy. This type of dismissal occurs when an employee's position is eliminated, usually due to restructuring, downsizing, or other business needs, and it is not a result of any wrongdoing or performance issues on the part of the employee.

Redundancy is typically driven by economic factors or changes within the organization rather than individual performance, making it distinct. It reflects a situation where the position itself is no longer necessary, irrespective of the employee's contributions or work ethic. This could happen in scenarios such as technological advancements that replace certain roles or when a company needs to reduce its workforce for financial reasons.

Other definitions provide different contexts: arbitrary dismissal refers to a termination without valid reason, unfair dismissal involves a legal determination that an employee was dismissed without justifiable cause, and wrongful dismissal relates to a breach of contract on the part of the employer. These terms do not accurately capture the situation in which the employee's position is eliminated due to external factors rather than personal performance issues. Hence, redundancy is the appropriate term for this circumstance.