| Redundancy at the moment is a very real threat | | | | What rights you have when you are made |
| for most of us and when this happens we can | | | | redundant your employer should then let you |
| start to feel very vulnerable. Panic can set and | | | | know immediately which one of these three |
| and we often freeze and pretend all is fine. There | | | | circumstances applies to you. |
| are plenty of things you can do to take control of | | | | 1. You are required to work out your notice |
| your life again. | | | | period |
| The UK job situation is looking getting a lot worse | | | | 2. You are required to serve out your notice at |
| and now is a good time to consider Redundancy | | | | home |
| Protection. The number of people claiming Job | | | | 3. You are given pay in lieu of notice.. |
| seeker's Allowance rose by 31,800 in September, | | | | What redundancy pay are you entitled to: When |
| to 939,900. This was the eighth consecutive | | | | you've worked for your employer for at least |
| monthly rise. | | | | two complete years, you're entitled to |
| Also this week the Bank of England governor | | | | redundancy pay. |
| Mervyn King expressed concern about rocketing | | | | At the time of writing, the legal minimum for |
| job losses. And Gordon Brown eventually | | | | redundancy pay is: |
| admitted that there was 'likely' to be a recession. | | | | · Half a week's pay for each complete |
| I think we all new that. Hopefully you won't have | | | | year of service below the age of 22 |
| to experience redundancy but many of us will, | | | | · One week's pay for each year between |
| and when it happens you should be prepared. | | | | 22 and 40 |
| Knowing your rights can make sure that you | | | | · 1½ weeks' pay for each year |
| receive all that you are entitled to and here's our | | | | above the age of 41 |
| guide through the redundancy process. | | | | · Statutory redundancy pay is capped, |
| If it happens | | | | currently at £330 per week. |
| When you're told they're having to "let you go" | | | | · The first £30,000 of redundancy |
| you're likely to feel paralyzed, angry and shocked | | | | pay is tax-free. |
| or a combination of all three. Your head will be in a | | | | The tax rules are complicated and you should |
| mess and you'll probably find it hard to think | | | | take advice, some payments like unpaid wages |
| clearly. When you have had time to recover | | | | are still taxable. If you head over to the HMRC |
| remember the following: | | | | website they have a very good fact sheet on |
| - Ask why the decision has been made to make | | | | redundancy and Redundancy Protection. |
| you redundant. You may not be able to do | | | | Company agreements |
| change it, but at least you won't be left | | | | Larger companies often give out redundant |
| wondering what went wrong. | | | | packages that are much higher than the legal |
| - Write down everything that is said at meetings | | | | minimum as they tend to have in place their own |
| with your boss. You may think you'll remember | | | | specific terms. Sometimes firms also offer |
| what's been said, but the chances are you head | | | | redundancy counseling to help you through the |
| will be in such a muddle you are likely to forget | | | | difficult period. There is one tactic that you should |
| everything. | | | | be aware of, sometimes companies make an |
| - Don't sign anything when you are first told, you | | | | offer of an extra lump sum payout. Probably this |
| should be given time to think about all that has | | | | is just a nice offer but if you have any doubts |
| been said. | | | | about any shortcomings in the redundancy |
| The next stage | | | | process then you should be cautious about signing |
| You probably want to rush straight off home but | | | | anything. Speak to a specialist in employment law |
| before you do you must get some important | | | | to find out where you stand. You never know, |
| information. | | | | they may be able to negotiate an even better |
| · P45, | | | | offer. |
| · Written details of your redundancy | | | | Check any Redundancy Protection you may have. |
| package: These should include how your benefits | | | | If you have been thinking ahead you will have |
| have been calculated, as well as good information | | | | taken out some form of Redundancy Protection |
| on your pension rights, details of any paid time | | | | for this very day. Contact your insurer |
| off and holiday entitlement. | | | | immediately and give them all the information |
| · Who to contact: Probably your | | | | they need. This can literally be a lifesaver as it at |
| manager, your trade union representative (if | | | | least takes some of the pressure off. Once you |
| there is one) and your contact in the human | | | | have the slightest inkling of redundancy you will |
| resources department. | | | | not get cover so don't leave it too late. Use a |
| · When you have to leave | | | | broker if possible, as they will be able to get you |
| If, when you have calmed down you will be in a | | | | a good deal and explain what is covered. Stay |
| much stronger position to if you do think you've | | | | away from single premium protection. |
| been made redundant unfairly. | | | | |