What to Do When Made Redundant
Being made redundant can often make you feel like you have been tossed to one side and don’t offer any value to anyone, but it is important to remember that it is not your fault that you have been made redundant.
Check Your ContractOn your first day at work you should have received a contract stating the terms of employment and what you are entitled to if you are ever made redundant. If you don’t have a copy of your contract you should be able to find one on your company website or get a new copy from your HR department at work.
Your contract should act as your bible during redundancy, it should be able to tell you everything you need to know about how much you will receive. Most employers will offer you redundancy after two years employment, but most employers will be required to give you up to four weeks notice.
Everybody who has worked at a firm for over two years is entitled to at least statutory pay. If you are under 22 you will be entitled to half a week’s pay for each year you have worked at the company. if you are aged between 22 and 40 you are entitled to one week's pay. If you are 41 or above you will be entitled to a week and a half's pay for every year you have worked a the company.
Remember though these are only statutory payments, your employer should be able to offer you a more generous payment.Statutory payments are only based on a maximum salary of £18,200, so you will have to calculate your payments around this.You should check your employer is not charging you tax on your redundancy pay, you are able to receive up to £30,000 tax free in redundancy pay.
Redundancy ChecklistBenefits; You should contact your local job centre as soon as possible and sign up for job seekers allowance. They will also be able to advise you about what other benefits you are entitled to, you may be able to get your rent and national insurance contributions paid.
Pay off any debts; Being made redundant will hit your finances hard, so if you are lucky enough to receive a large redundancy pay check you should try and pay off some of your debts so you don’t have them looming over you.
Check Your Insurance; If you have taken out any insurance on your mortgage you will be able to use it to pay your mortgage payments, so check your mortgage contract to see if you have taken out mortgage insurance.
Job Hunting; After you have been made redundant you should start brushing up your CV and look for jobs as soon as you can. It is a lot easier to get a job when you are still motivatedabout being in work. If you remain unemployed for a long time it can sometimes be hard to get motivated back into work again.
Treat Yourself; You may not think that just after losing your job is the best time to treat yourself, but a little you time can sometimes be just what you need to help pick you up after being made redundant.
Panic is the normal reaction to have when you are made redundant, but if you take a deep breath and face your problems head on you should be able to survive redundancy and start the next chapter in your life.