Redundancy is a situation in which an employee is no longer needed in their position and no appropriate alternative role is available. It can occur due to restructuring, contract termination or business closure, and is never easy to deal with. If you fear your job may be at risk, it's important to prepare for redundancy and understand your rights during the process. This guide provides an overview of redundancy in the UK and outlines how to prepare and navigate redundancy.
Understanding Your Rights
Before you start preparing for redundancy, it's important to understand your rights as an employee in the UK. Under the UK's Employment Rights Act 1996, you are entitled to statutory redundancy pay if you have been employed continuously for two or more years. This means that employers must provide employees with a certain level of compensation in the event of redundancy.
If you have been employed for two years or more, you are entitled to one week’s pay for every full year of employment up to a maximum of £538, after which you will receive the statutory maximum. Part-time employees are entitled to the same benefits as full-time employees.
You may also be entitled to additional benefits, depending on your employer's generosity, your years of employment and contractual arrangements. These benefits may include contractual pay-outs, accrued holiday pay, and outplacement support or counselling.
The Government's Redundancy Payments Service is a useful resource for understanding your rights and entitlements.
Preparing for Redundancy
The best way to prepare for redundancy is to create an action plan. This means considering your options and working out what the best approach is for you. Before making any decisions, it's important to understand your redundancy package and what it includes.
It's also worth speaking to your employer to see if there are any ways to avoid redundancy. If this is not an option, you should consider other sources of income and think about how you will make ends meet.
It’s worth seeking Professional advice from the Citizens Advice Bureau (CAB) who can provide helpful advice to employees in the event of redundancy. The CAB can help you to understand what your options are and what financial support is available to you.
Finding a New Job
Finding a new job can be daunting, especially if you’ve been made redundant. It’s worth taking some time to reflect on what kind of job you’re looking for and where you want to work. This will help you to target your job search and make sure you’re applying for roles that are suitable for you.
You should also update your CV and cover letter, as well as making sure that your LinkedIn profile is up to date. It’s also worthwhile creating a portfolio or website to showcase your work and abilities to employers.
Networking is an important way of finding job vacancies. Try to attend industry events and reach out to people within your industry, or join relevant Facebook groups or LinkedIn groups.
Practical Steps During Redundancy
Once you have been made redundant, there are a few practical steps you can take to ensure you are dealing with the process as effectively as possible. It’s important to keep all documentation relating to your redundancy, such as letters of termination and any information regarding your compensation package.
It’s also important to keep in touch with your employer, as leaving on bad terms can affect your chances of securing references or references in the future. You also need to make sure that your employer informs the Government of your redundancy, as this will ensure you are eligible for any benefits or compensation you are entitled to.
Post-Redundancy Advice
Once you have been made redundant, it’s important to focus on your future. Try to take some time to reflect on what you have learnt during your redundancy and use it to your advantage.
It’s also important to take the time to focus on what you’re looking for in your next job. Identify your skills and experience and think about how these could be transferable to different industries and roles. This will help you to target your job search more effectively.
Finally, don’t be disheartened if it takes some time to find the right position. Redundancy can be tough, but with the right strategy and support, it is possible to bounce back and find your dream job.