The day redundancy strikes

There are things you must sort out straight away to limit the immediate damage and help get you back on your feet

There are things you must sort out straight away to limit the immediate damage and help get you back on your feet

You thought the day would never come, but it has. The boss, thoroughly uneasy, used phrases like “We hate to let you go” or he might have ducked out and sent you a letter, an email or even a text.
However the bombshell fell, you’re one of the 2,000-odd people who were made redundant in the UK on that one day. So what do you do now?

Shell-shocked

“Obviously it’s not easy to collect your thoughts when you’ve just been given the push, the contents of your desk are in a black bin bag and it’s tempting to let things slide,” says Bristol redundancy counsellor Sandra Collett. “But however shell-shocked you feel, there are things you must sort out straight away to limit the immediate damage - and help get you back on your feet.”

First, know your rights. Look at your contract of employment, which sets out your rights to redundancy pay and notice. If you’ve been in your job for at least two years, you’ll be entitled to a redundancy payment of up to £430 a week and the first £30,000 pounds is tax free.

With any luck, your company will be more generous. If it tries to undercut these minimum limits complain first to your employer, then your union, if you have one, or any internal grievance system. If this fails, there’s the Acas arbitration service, which offers free advice

If less than 20 jobs are being made redundant, your boss must negotiate directly with you and reimbursement must include unused holiday, outstanding expenses and employee benefits. Your employer should also try to find you another job in the company that reflects your skills and qualifications, but you’re not obliged to accept it.

Make use of any facilities the company offers - counselling, the use of the office equipment or financial advice. Remember that being made redundant isn’t the same as being sacked and if you suspect your boss is hiding the real reason for getting rid of you, you could claim unfair dismissal.

If you are actively looking for work, you can claim a contributions based Jobseeker’s Allowance of £71 a week if you are over 25. The allowance isn’t means tested, so any redundancy payment won’t affect your entitlement. But you won’t get it until the period covered by any pay you got in lieu of notice has expired. Remember, too, that this payout only lasts six months, after which you can claim income based Jobseeker’s Allowance for those who haven’t made enough national insurance contributions.

You may also be able to claim housing and council tax benefits and if your income has fallen you should apply to get any child tax credits recalculated.

Take immediate steps to protect your home by looking into the government’s mortgage interest support scheme, which recently reduced the waiting time for new claims from 39 to 13 weeks and doubled the amount eligible for mortgage relief from £100,000 to £200,000 for two years. Mortgage lenders claim they will look sympathetically on redundancy victims in arrears, so contact them sooner rather than later.
If you have payment protection insurance, now is the time to make a claim, but be warned - policies are notoriously difficult to claim on. And even if you are successful, a typical payout lasts just 12 months, but hopefully by then you will have found another job - or maybe started your own business.

Talk frankly

What is your financial situation? If possible, pay off pressing debts and talk frankly to your bank. Let them know exactly what’s happening. They will help you more than if they’re left in the dark.
Says the debt advice service National Debtline: “When they are suddenly made redundant, many people are in shock and don’t keep a cool head. Debt can soon get out of control. Pay something off essential bills on a pro rata basis. Most organisations would rather you made regular reduced payments for a while than paid nothing.”

Do an audit to identify your skills. Then see how they might apply to other types of businesses or sectors.

Involve friends and family from the moment the redundancy axe falls. Ironically, our reaction when under stress is often to withdraw from those who can offer the most support. Sharing problems will make you feel you’re not on your own and help to reduce tension. But remember people can only take so much doom and gloom - try to have some fun as well.

Use your network. You’ll be surprised how many people you know who may be able to put you in touch with someone who can help. Try to get at least one promising contact from everyone you meet.
Set yourself targets to chart your progress and get things moving. Just achieving small goals will give your morale a valuable boost.

Get a sense of purpose. Work out what’s more important to you. What rewards, apart from money, did you get from the job you’ve just lost? Where else can you find those rewards and what outlets can you find for your talents?

Look after yourself. Some form of exercise, even walking the dog, can get your body’s defences working and help to bring stress levels down. A good balanced diet is also essential to deal with the challenges and problems of life after redundancy.

Boost your self image. It’s not your fault you were made redundant. Think of specific qualities you appreciate about yourself, while still being aware that there are ways in which you need to develop.
Think positively. Replace the word ‘should’ with the word ‘could’. Think about what’s going well in your life - there must be something. Learn to recognise opportunities and create your own.

Accept constructively what’s happened to you, as opposed to resigned acceptance.  “Acknowledge the day to day reality of redundancy and adapt accordingly,” says Sandra Collett. “Having come to terms with anger and grief, you can make realistic plans for the future.”

Take risks. Experts say that being adventurous builds confidence. Pushing yourself outside the comfort zone to try something new or difficult can be scary, but invigorating.
Rewrite your CV. Just seeing what you have achieved will probably do wonders for your self confidence. Most potential employers take within 20 and 30 seconds to ask an applicant to come for an interview. The contents and presentation of the CV is invariably the deciding factor.

Try something new

Look at your life. Do you want to continue what you were doing before redundancy or try something completely new? Think about how you want to work. Could you cope with being self employed? Talk to freelances you know about the advantages, and otherwise, of working for yourself.

Remember your long term goals. Don’t just focus on the short term necessity of getting a job. Ask yourself where you want to be when the economy starts to boom again. Try to maintain your own sense of purpose and vision.

Believe in yourself. “If you don’t, no one else will,” says Tim Coleman, who speaks from experience. Made redundant in 1998, it took him over a year to get backing for an executive car hire company and was advised by his bank manager to look for a job.

Today the firm has 300 cars, grosses over £8 million and employs Coleman’s former boss. “I knew I could do it,” he says. “After that, it was just the small matter of convincing everyone else.”