Losing your Job (Being Made Redundant)

Being made Redundant can be a devastating experience. Apart from the fear of how you are going to cope financially without a job, there are also feelings of shock that it's happened to you and feelings of anger, humiliation and upset at being rejected like this. But what with globalisation, there is no such thing as a job for life and most people will experience it at least once in their lives.

The first thing to do is to know your rights. Under UK law, there are rules covering redundancy. Redundancy is defined as job loss due to company restructuring - essentially they are saying that your role isn't needed anymore, hence the word "redundant".

Under UK law, your company must give you at least 30 days notice, and compensate you with a tax-free redundancy payment. See the Department of Trade and Industry website for details of the minimum payments, but you are generally entitled to between 1 to 1.5 weeks pay (capped at £310 per week) for every year's service with the company. In practice most companies will be more generous than the statutory minimum payment.

Once you get your payment, don't blow the payment on a holiday thinking "you need it". The reason there is a statutory minimum redundancy payment is because redundancy usually tends to occur during downturns in the economy where new jobs are difficult to come by. Stick the money in a high-interest rate savings account and don't touch it for now.

Take all the help your company provides - some firms now have redundancy programs, where they provide help with CV writing, training and other support. The CV and training offers are particularly valuable. It's easy to get rusty about how to do job applications and CVs and how to do interviews. If you are in a trade union, consult them too - they will usually be able to advise you of your rights, tax issues, and training.

On your first day of unemployment, sign on immediately at your local unemployment dole office. Don't feel embarassed - you've already paid for the assistance by paying your National Insurance contributions. The Department of Social Security website should be able to tell you what you are entitled to get.

Next, sign up with all the temp agencies you can, and take any work that is going, no matter how low-paid (all of it will be above the dole amount due to the minimum wage). The idea is to get money in, so you don't use up all your savings. Temp work is often overlooked as an entry into firms, where you can network and find out internally whether there are any permanent jobs going. While temping, do everything you can to slash costs and reduce your outgoings.

Also register with the employment agencies that specialise in providing permanent work in your field and send them your cv. Do whatever you think will help you in getting a new job, including doing professional exams.

Hopefully you will find a new permanent job fairly quickly. Once you have the job offer in hand, now is the time to think of taking a week off before you start the new job. You've just been through a traumatic and stressful experience, and you probably need the break to recharge before you plunge into your new job.


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What happens to your mortgage when you become unemployed

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