Helping you find your job heaven.
What is redundancy?
Redundancy is when a workforce has been reduced by an employer due to the lack of work requirement. Recently the economic downturn has caused businesses to be more conservative with budgets and staff.
By law you are owed redundancy pay if you have worked for a company for at least two years or had a fixed-term contract of two years or more that has expired and not been renewed due to redundancy.
If you do not class in the above category you are ineligible for redundancy pay, however you are entitled to any holiday pay you are owed as well as the money for your notice period.
Notice pay: The amount of notice you are owed would be covered in your employment contract prior to you working, this could be between 1-6 weeks. Usually you work the length of your notice, but because of redundancy you may be asked to leave straight away. You would still be entitled to your full pay agreed in your contract giving you time to search for a new job. This will not be the case if you have been made redundant due to Gross Misconduct.
When some companies trim the workforce they often give employees the option of a voluntary redundancy, this way you feel the same pay out benefits of a redundancy without suffering the de motivation of having been made redundant. Often voluntary option comes with a more financial severance package, but you have to determine yourself whether it’s worth it if you have not got another job lined up.
You are still able to claim jobseekers allowance as it still classes as dismissal, and you are eligible for the full statutory and contractual redundancy pay by being protected by redundancy law.
Steps for controlling redundancy
Telling the right people, you may feel slightly embarrassed about the fact but you have no reason to, anyone can be made redundant.
Get straight on to Job Seekers Allowance, claim the money whether you need it or not. This money contributes towards your national insurance as if you were working and you do not want there to be a gap in your NI record as it could affect your pension in the future.
Budgeting, your redundancy pay will only last you a certain amount of time so limiting your expenditure and staying on top of it is best until you find a new job.
Organising a schedule, not having to be your usual 9-5 to stay in the same frame of mind as if you were at work. But include time to look for jobs, networking, health and fitness, family and friends and hobbies.