Almost 2,500 people a day reported being redundant from December 2020 until February 2021.
That’s according to the latest figures from The Money Charity, highlighting the impact the pandemic has had on employment across the country.
And while the furlough scheme has played a vital part in supporting many people over the last year, worries of redundancy still linger as uncertainty continues.
That’s why it’s important to be aware of your redundancy rights should the worst happen in the coming weeks and months.
Whether you’re facing redundancy or are just arming yourself with knowledge, our guide shines a light on making sure you’re treated fairly.
Is your redundancy being treated fairly?
Facing redundancy or being made redundant is a daunting time filled with mixed emotions.
However, when you’re made redundant it’s important to take a moment to consider whether this has been done fairly.
The reality is redundancy amounts to dismissal from your employment as your contract comes to an end. As such, your employer must do this fairly. If they don’t you may be able to claim for unfair dismissal.
Employers must meet certain criteria when considering making a person redundant such as your level of experience and ability to do the job. They cannot base redundancy on criteria such as your age, gender or because you’re pregnant or disabled.
If it’s possible, your employer should consider your ability to work in different roles within the business and consider redeploying you.
However, if the business is closing entirely the employer may not use a selection process as everyone may be losing their job.
How much notice should you receive?
This varies depending on the length of time you have worked for an employer.
If you have been employed between one and two years, you must be given at least one weeks’ notice.
Anyone employed between two and 12 years should be given one weeks’ notice for each year and if you have been employed for over 12 years, you must be given 12 weeks’ notice.
Your contract could also highlight a specific notice period so it’s important to check if you’re facing redundancy.
An employer must pay you throughout any notice period in addition to any Statutory Redundancy Pay you are entitled to.
What is Statutory Redundancy Pay (SRP)?
If you have worked for your employer for more than two years you must be paid Statutory Redundancy Pay (SRP).
How much SRP you receive will depend on your age and length of service and contract. Some people are entitled to more because of their employment contract so it’s always important to check yours should you face redundancy.
However, generally speaking, the below applies for those facing redundancy:
- Workers under 22 years of age should get half a weeks’ pay for each full year worked under the age of 22.
- Staff between 22 and 14 years of age should receive one weeks’ wage for each full year worked.
- Workers over the age of 41 are entitled to 1.5 weeks’ wage for every full year.
SRP is payable for up to 20 years’ service and as mentioned is in addition to the pay you are entitled to throughout your redundancy notice period.
You can find out more information about this on the Government website.
How to manage finances after redundancy
Naturally one of the biggest concerns after redundancy is covering the cost of financial commitments.
Regardless of your situation bills still need to be paid to keep a roof over your head and food on the table but sometimes it can be easier said than done.
Finding another job is often always the end goal, however, during these unprecedented times finding employment can be a long process.
That’s why it’s important to set a budget as soon as possible to ensure you can continue to make ends meet.
Establishing your income and expenditure is key to making your money go as far as possible for as long as possible.
Although it may be difficult but you need to then prioritise your spending. Essential bills such as your mortgage/rent, utilities, council tax and TV Licence are all priority bills and shouldn’t be ignored.
For other non-priority bills such as TV subscriptions or gym memberships, perhaps you’ll need to freeze or cancel your accounts until you are in a more financially stable situation.
Finding debt help after redundancy
If you’re worried about cover the cost of credit cards, overdrafts and any other secured debt, support is available.
Carrington Dean advisers speak to people every day who have faced making tough decisions just to cover the cost of day-to-day essentials after redundancy.
They understand how hard it can be to open up and ask for help when it’s something you never thought you’d need.
That’s why they offer non-judgmental and confidential support to help people on the road to regaining control of their finances again.
It may not seem like it but if you’re facing redundancy, you’re not alone. Talk to Carrington Dean.
