You can plan for redundancy so you’ll be prepared if it happens to you.
- Know your rights: Check your contract of employment and employee handbook to see what your basic redundancy package might be. You can also check your statutory redundancy pay, which is the legal minimum you’re entitled to by using the GOV.UK online calculator. Alternatively, you can find out more about your rights at WorkSmart
- Manage your money now: If you think redundancy is on the way, start cutting your spending and if you can, increase your savings. Make a budget to help you get a clear idea of how much money you have coming in and out, and how much you can afford to put away. Now is also the time to get any debts under control. See more about making a budget
- Have an emergency fund: This will cover you in the short term while you work out your next steps.
- If redundancy is definite, contact your mortgage provider to let them know what’s happened and see if you can apply for a break in mortgage payments until you’re settled in a new job.
- If you’re nearing retirement age, it may be a possibility to take early retirement as an alternative to redundancy.
Being made redundant can be an opportunity to find a job that suits you better, change your career or even start your own business. If you've worked continuously for your employer for two years or more and you’re made redundant, you’re entitled to paid time off during the notice period, usually two days, to look for new work and attend interviews.
Current and past work contacts, employment agencies and previous employers can all be helpful in your search for new work. If you don’t already have one, set up a LinkedIn account with details about your skills, work history and contact information. You can also apply for help with retraining and looking for work, through a career development loan, grants and bursaries for study, or a paid apprenticeship.