Whether you’ve worked in your job for a few months, a few years or even a few decades, being made redundant can be a real shock. As Money Saving Expert says:
“Redundancy brings many pressures; worries over mortgage payments, fears of finances falling apart, the stress of job-finding or strain on a relationship.”
Knowing your rights, and being prepared for what to expect in the case of redundancy should help to make the process smoother and less stressful, especially if you’ve put plans in place for just such an emergency.
How long have you worked for your employer?
The redundancy process in the UK varies depending on how long you’ve worked for your employer. If you’ve been with the company for more than two years, there are certain rules your boss has to follow. For example, your boss has to have a meeting with you one-on-one to discuss your redundancy. They are required to talk to you about how they’ll choose people for redundancy, how long the decision will take, what meetings you can go to and when and how you can appeal if you’re chosen for redundancy.
This meeting also offers you the chance to ask why you’ve been chosen for redundancy, challenge the decision and find out what other options are available to you. Try to prepare for this meeting by researching fair redundancy practices and checking that your employer is following the law. If you’ve worked for your company for less than two years, they aren’t required to follow the same process. However, many businesses, especially larger corporations, may still have their own redundancy policies, so ask your employer to find out more.
Money is the main thing that most of us worry about when we’re made redundant. Again, the amount of pay you’re entitled to will be dependant on how long you’ve been with your company. If it’s more than two years, you should receive half a week’s pay for each full year you were under 22, one week’s pay for each full year you were 22 or older, but under 41 and one and half week’s pay for each full year you were 41 or older. It’s also important to remember that redundancy pay (including any severance pay) under £30,000 isn’t taxable.
However, if your employer offers to keep you on in a different position, or if your employer offers you suitable alternative work and you refuse without good reason, you won’t be entitled to any redundancy pay. Those who have worked at a company for less than two years may also find they don’t receive a pay out when they’re made redundant.
If you’re worried about redundancy, taking out insurance could help to put your mind at ease. Get in touch with a member of our team, or take a look around our site to find out more.
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Written by: Editorial Team