1. Looking for new opportunities
Redundancy may mean it’s time to take a break and enjoy a slower pace of life for a while, but that is not for everyone.
If you still want or need to work after losing your job, your first step should be to speak to your local Jobcentre. Ask for its Rapid Response Service. This department specialises in helping people get back into work after redundancy.
As part of this service, you may be offered help with writing a new CV, learning new skills, and finding jobs and training. The Rapid Response team can also tell you whether you may be able to get financial assistance for childcare, travel expenses, training, and tools or equipment.
This can be especially helpful if you were in the same job for a long time and have not explored other options recently.
You can contact the Rapid Response Service up to 13 weeks after your redundancy.
Once you have an up-to-date CV, sign up for employment sites such as Indeed, Reed, LinkedIn, and Monster. When using these sites, search for job titles that are similar to your own. Your former job title may not be what other companies call a very similar role.
It may also be worth signing up to the government’s National Careers Service, especially if you think it may be time to change careers.
2. Sort out your finances
There is no avoiding it: redundancy often brings money worries.
First, make a budget that reflects your new income and outgoings. Having a clear overview can help you manage your finances more confidently.
Be sure to check your state benefits entitlement. Depending on your circumstances, you could be eligible for Universal Credit, housing benefit, and tax credits. That may at least provide some financial relief.
If you own your home, check your mortgage payment protection insurance, as it may cover redundancy. If you rent privately, speak to your landlord to see whether you can reach an agreement, and make sure it is confirmed in writing.
When dealing with debts, you may find it helpful to discuss your situation with StepChange. This debt advice charity helps people get their finances back on track, with advice tailored to individual circumstances.
It may also help to speak to an independent financial adviser. They can offer guidance on managing your money, including whether putting part of your redundancy pay into a high-interest savings account could help your money go further.
3. Challenge your redundancy
Just because you have been made redundant does not mean you have to accept it without question.
If you believe you were unfairly selected for redundancy or that the correct process was not followed, you may be able to make a redundancy claim.
As with any workplace dispute, you should first try to resolve the issue directly with your employer. You should already have been told about your right to appeal the redundancy decision. If you still lose your job after your appeal, consider speaking to employment solicitors. They can guide you through your legal options.
Find out more in ‘Can I make a redundancy claim?’
The claim process begins by informing ACAS, which offers employees and employers free, impartial advice on workplace rights, rules, and best practice. As part of its role in helping to resolve workplace disputes, you and your employer will be offered mediation known as early conciliation.
Early conciliation may help resolve the matter without taking your case to an employment tribunal. However, if no legally binding agreement can be reached between both parties, ACAS can allow you to proceed with legal action.
At that stage, if you have not already spoken to a solicitor, it is a good idea to do so.
To make a claim, you must do so within three months minus one day from the date of your redundancy.
4. Claim for redundancy pay
In most circumstances, your employer should already have paid any redundancy pay, notice pay, and outstanding annual leave pay that is due.
Remember, you will usually be eligible for redundancy pay if you have worked for the business for two or more years. Statutory notice pay is available if you have been with the company for at least one month.
If the company you worked for is insolvent, you may be able to claim any money you are owed through the government’s Insolvency Service. They recommend using their redundancy pay calculator to find out how much you could claim.
You only have six months from the date of your redundancy to make a claim through the Insolvency Service.
If your employer will not pay what you are owed but is not insolvent, you will likely need to take legal action through an employment tribunal. An employment solicitor can advise you on the next steps. This process is generally similar to challenging your redundancy.
As with other redundancy disputes, you have three months minus one day to make a claim for redundancy pay.
When you want to dispute your redundancy or recover money you are owed, The Law Superstore can help. Our quick quote form connects you with employment solicitors who may be able to help you make a redundancy claim.
What are the 5 stages of redundancy?
Redundancy is a challenging process for both employers and employees. It typically involves five key stages: consultation, selection, notice, redundancy pay, and support with finding new employment. Understanding these stages can help you navigate the process more effectively.
How does redundancy work?
Redundancy happens when an employer needs to reduce its workforce, often because of financial pressures, restructuring, or changes in the way the business operates. The process usually involves identifying roles that are no longer required, consulting with affected employees, providing notice, and paying redundancy pay where the employee is eligible.
What are the redundancy steps?
The redundancy steps are the actions taken during the redundancy process. These usually include identifying the need for redundancies, consulting with employees, selecting employees based on fair criteria, giving notice, calculating and paying redundancy pay, and offering support with future employment.
What are the three R’s of redundancy?
The three R’s of redundancy are often described as Redundancy, Reemployment, and Rights. Redundancy refers to the loss of a role because it is no longer needed. Reemployment focuses on helping affected employees find new work. Rights refers to the legal protections and entitlements employees have during the redundancy process, including notice periods and redundancy pay.