Coping with redundancy

In Nov 2018, we heard the sad news that  Michelin was  closing its tyre factory in Dundee leaving 845 workers jobless. A story which also hit a nerve in my home town on the Isle of Wight where we’ve been victim to major mass redundancies over the years.  Redundancy is a brutal life event up there with bereavement and divorce in terms of stress and emotional pressure. 

With redundancy everything takes a hit, self-esteem, finances, family and mental health, nothing escapes the cloud that descends when you are ‘let go’ from your job.  It can be difficult to see a way forward but there is light at the end of the tunnel.  If like those workers in Dundee you are currently facing the loss of your job, there are steps you can take to lessen the impact.

Know your rights. There are strict guidelines around staff redundancies. Employers must follow the rules and if they don’t, you may be entitled to an appeal or even a legal case against your employer. You can get free advice on your rights via your local Citizens Advice Bureau or Job Centre Plus.  

If you’ve been employed with a company for 2 years or more, you should be entitled to statutory redundancy pay (calculated for each year in service). This provides a substantial buffer in some cases, but if not, how can you financially prepare with redundancy on the horizon?

Martin Lewis from www.moneysavingexpert.com suggests the following precautions

• Do a debt audit.  Loss of income means lenders can be less keen to give you credit. Seek out good deals on balance transfers, loans and mortgages before redundancy happens.
• Pay off debts. If you have spare savings, use them to clear outstanding credit cards or loans. Having debts hanging over you during redundancy is a nightmare. But, keep access to some emergency funds.
• Do a money makeover. Run through your finances now to see what bills you can cut completely and where you can cut back. Start living as if you've already lost your job.

If the worst has happened and you’ve already been made redundant money expert Martin Lewis has sound advice for you too.

• Check if you are entitled to benefits? Benefits and tax-credits spread further than you think; it's important to ensure you're getting all you're entitled to.
• Deal with your debts. Don't ignore red letters. Contact creditors and discuss the problem with them as soon as possible. They may be able to help.
• Check for hidden insurance. Do you have hidden insurance to help with mortgage or credit cards? This is one case where you may be a lucky victim of mis-selling.
• Share the burden. Losing your job can add stress to any relationship. Don't be afraid to tell family and friends your news. You will need support and they can’t help if they don’t know.

When speaking with people who have faced redundancy in the past, the majority will tell you that it was one of the worst experiences of their life, and one of the best things that ever happened to them. Quite the oxymoron, but it is true.  Losing your job can be a catalyst for large scale change, new job, new home, new life, and although not everyone feels ready, those changes CAN be incredibly positive. 

Remember, you are not alone, there is a lot of guidance for people going through redundancy. If you accept support, the process will be gentler and you can move through to a better brighter future.

Don’t forget to update your CV now, and if you would like a free careers consultation  to discuss your next step, we will be very happy to help, just call us  on 01983 215777

For more advice on redundancy visit   https://www.gov.uk/redundant-your-rights