A Guide to Help You Through Redundancy
When you are made redundant it can feel like your world is collapsing around you. The sense of security that your job offered is no longer there and this can lead you to feel insecure about yourself and your future prospects.
This site has been written by those who have experienced redundancy, either first hand or through loved ones and is designed to offer you practical help and guidance through the redundancy process.
For a lucky few, redundancy can be a gateway to bigger and better things, but for most it will be an arduous road full of questions and uncertainties. This site is designed to give you an overview of the redundancy process and what your rights are should you suspect you have been unfairly dismissed.
1, When redundancy is on the cards
There are often many signs that
redundancy might be on the cards before an employer even makes the announcement, for example if a firm is struggling financially or has lost a big contract they may be looking to cut costs. To be forewarned is often to be forearmed and there are steps you can take to make sure you are
prepared for redundancy, many of which are included in this site.
2, The difference between redundancy and being dismissed
Many people mistake
being made redundant with being fired or sacked.
Redundancies happen not for personal reasons but because your employer needs to shed staff to maintain a profitable business. Some common reasons for a firm making redundancies include:
- The firm being in trouble and not making a profit
- A restructure means your job no longer exists
- Departments are merging, so two jobs might become one
If for any reason you think your redundancy has been made for personal reasons you could have a case for unfair dismissal.
3, How to break the news to loved ones
Unfortunately many still feel there is a stigma attached to being made redundant and can feel ashamed and embarrassed to
tell friends and family about their fate. It is nothing to be ashamed about though and it is important to separate yourself from your job. It is not you that is being made redundant but your role.
4, When you are the one making redundancies
There is often little sympathy for the employers who are forced to make their staff redundant. In many cases though the redundancy process is just as hard for employers as it is for employees, especially amongst smaller firms where colleagues are often like family.
There is no easy way to break the news to somebody that they are going to be made redundant but there are certain procedures you will have to follow in order for the process to be lawful.
If you are making less than 20 employees redundant you will need to go through individual consultation with each employee, which means talking to them face-to-face and looking for an alternative.
If you are making more than 20 people redundant within 90 days, this will be classed as a collective redundancy. In this scenario your employer would usually consult with a trade union representative if your firm has one. If you do not have one they may choose to speak to you as a group as oppose to individually.
You will need to give staff thirty 30 days notice if your want to make between 20 and 99 employees redundant and 90 days if you wish to make 100 or more employees redundant.
5, The benefits of taking redundancy
It can be hard to see any positives from being made redundant, but not all redundancies are unwelcome. It is common for firms to embark on yearly redundancies in which they will
ask for volunteers. Voluntary redundancy is often more attractive to those that are nearing retirement or know that they can find a job elsewhere easily.
Within some firms voluntary redundancy may prove so popular that employees may need to compete for it. If you do not like your job taking voluntary redundancy offers you a lump sum which could help you start a new business or new training course.
6, Have you been selected fairly?
For those involved in the process redundancy very rarely seems fair. It is however the job of your employer to describe to you why you have been
made redundant and provide evidence. Other factors may also come into play, such as your disciplinary record, your attendance and how long you have worked at the company. It is acceptable for your employer to judge candidates on this basis, as long as it is done in a fair way? Your employer should not be looking to replace your exact role once they have made you redundant, if they do this it could be deemed unfair and you may be able to make a claim to an
Employment Tribunal for unfair dismissal.
7, What to do if you suspect unfair dismissal
Redundancy procedures for employers are strict and you may have a
case for unfair dismissal if you suspect your employer has not followed them correctly.
Common reasons for employers being taken to a tribunal for unfair dismissal include:
In order to make a claim for unfair dismissal you will need to have been employed at a firm for at least a year, although it is possible to make a claim earlier, depending on the circumstances.
8, How much are you entitled to?
If you have been working at the firm for more than two years you will be
entitled to a statutory redundancy payment, which will need to be made within six months of you finishing your job.If your employer refuses to pay this you can take them to an employment tribunal.
Statutory redundancy is the basic redundancy package the government sets and is not personal to your own employer and your own employer may offer a better package.Under statutory redundancy your weekly pay will be capped at £400 and you will get 0.5 week’s pay for each full year of service if you are under 22.You will receive one week’s pay for each full year of service when you are 22 or above, but under 41, and 1.5 week’s pay for each full year of service over 41.
9, Accepting another job within the company
Your employer should do their utmost to find you
alternative employment within the company and this may involve you having to apply for another job within the firm. There may be opportunities elsewhere in the company for you, but be aware that is you take another role within your firm you will not be entitled to your redundancy pay-off from your old job and your new role might not be as appealing meaning you end up leaving the company anyway.
10, Deciding what to do with your redundancy pay
It may be tempting to spend your redundancy pay all in one go, especially if you are confident you can get another job. But the best way to make use of your redundancy pay is to
clear off any debt you may have, whether this be loans or credit cards. You should also
create a budget and calculate how much you will need to live on every month and set aside enough money for this.
11, How to pay your bills
Finding a new job can often be challenging and the most stressful aspect of being made redundant for many is having to manage their finances. There is help at hand though and you may be able to
claim jobseeker’s allowance, income support, and help with paying your mortgage through the mortgage rescue scheme. You should also check your
insurance policies as many people are unaware that they have a policy that will cover their income should they be made redundant. Details of the schemes are included in the site.
12, Feeling depressed after being made redundant
Your motivational levels to find another job will be high in the first few weeks of becoming redundant, but after time and a few rejections it can be hard to pick yourself up and keep motivated. Being unemployed over time can
lead to depression which in turn can isolate you from your friends and family. If you feel depressed it is important to speak to your doctor or seek professional help. This site offers advice on coping with depression and tips on
finding another job and keeping yourself motivated.
And finally…
It can be hard to see any light at the end of the tunnel when you have been made redundant, but it is important to
maintain a positive attitude, keep in touch with old colleagues and network as much as possible. The job centre, recruitment agencies and the web can be vital sources when looking for a new job, but the best way of finding work is still through word of mouth.
We hope you will keep revisiting our site for inspiration, motivation and guidance while you consider all of your options.