Dealing with redundancy – a guide for employees
Have you been made redundant or are you at risk of redundancy? With the UK economy forecast to be in recession until next spring, the threat of widespread redundancies looms large on the horizon.
Over the last few days, every local BBC radio station reporter has been put at risk of redundancy as part of plans to deliver a service using fewer presenters. Meanwhile, Royal Mail plans to cut 10,000 jobs by next August. And another 10,000 jobs also look set to be shed by retail giant, Amazon, over the coming weeks and months.
News of these redundancies, plus the redundancies that are yet to happen, can make you feel unsettled, and understandably so. While we can’t guarantee what’s going to happen in your workplace, we can provide you with some insight to help you understand and manage the redundancy process.
What is redundancy?
Redundancies essentially involve making certain jobs redundant which, in turn, makes people surplus to requirements. They’re usually fuelled by the need to reduce staff numbers.
Being made redundant isn’t the same as being sacked. According to ACAS, employers should only make people redundant if part or all of the company is:
- Closing or has already closed
- Changing the type or number of roles required to carry out work
- Relocating
Employers can only make people redundant in response to business needs, not because they have a specific issue with you.
If your employer makes less than 20 employees redundant, this is referred to as an individual redundancy. If more than 20 employees are being made redundant within 90 days, this is known as collective redundancy.
Regardless of if you’re at risk of individual or collective redundancy, your employer must follow a fair redundancy process , particularly if you’ve worked for them for at least two years by the time your job ends.
Employees’ redundancy rights
Employers should ideally go down the redundancy path as a last resort. Alternatives to redundancy, include redeploying or training staff, job sharing, flexible working, volunteer career breaks and early retirement.
If you are being redundant, you may be entitled to:
- Redundancy pay
- A notice period (more on this below)
- Consultation with your employer
- The option of moving to another job
- Time off to find another job
While the prospect of being made redundant can be daunting, don’t let it put you off from fully exploring your rights and what you might be entitled to.
Note – if you’ve been continuously working for your employer for the last two years (by the date your notice period ends), current Government guidance states you can have time off to:
- Go job-hunting
- Arrange training to help you find another job
Redundancy notice
If you're being made redundant, your employer must tell you how long your notice period is going to last and continue to pay you right up to the very end of it.
Generally speaking, most employees continue to work during their notice period, which is calculated based on how long people have worked for their employer for. For peace of mind, and based on best practice guidance from ACAS, it’s always useful to ask your employer to clarify the following in writing:
1. The start and end date of your notice period.
2. Any allowances around leaving before your notice period is up.
3. If you’re allowed to take any unused annual leave before your notice period ends.
4. What happens re: your contractual benefits, e.g. fuel cards, work mobile phone bills etc.
Calculating redundancy pay
Statutory redundancy pay is based on three factors - how old you are, your weekly wage (gross pay) and how many years you’ve been doing your job for. (Note – you only qualify for statutory redundancy pay if you’ve been working for your employer for at least two years).
- 17 to 21-year-olds – are entitled to receive half a week's pay for each full year they’ve worked for their employer
- For 22 to 40-year-olds – it’s a week’s pay for each full year they’ve worked for their employer from the age of 22, plus half a week’s pay for every full year they worked for them before that
- If you’re aged 41 or over – your employer must give you:
- One and-a-half weeks' pay for each full year you worked for them from the age of 41
- A week’s full pay for each full year you worked for them between the age of 22 and 40
- Half a week's pay for each year you worked for them between the ages of 17 and 21
If you’re unsure about whether or not you’re entitled to redundancy pay, speak to your employer and/or check your employment status.
As for calculating your actual statutory redundancy pay, there are some online tools you can use, including the Government’s online calculator - https://www.gov.uk/calculate-your-redundancy-pay
I’ve been made redundant…what’s next?
As we said at the start of this article, redundancy can be overwhelming, daunting and everything in between. But it can also be the spring board for new and exciting opportunities you may not have considered before, especially if you retrain and do something you’ve never done before.
While we can’t wave a magic wand and make redundancies go away, we can take our pick of the best tips to help you bounce back from it!
Our top five tips for what to do next if you’ve been made redundant
1. Review your CV – your CV is the shop window to your professional world – your skills, your experience, your qualifications and more. As crucial as it is to finding work, it’s not something we all get chance to keep updated. If you haven’t already done so, dust it off and make sure it’s fully populated with the very latest details. You may even find you want to recreate it, which is relatively easy (and fun) to do these days, thanks to tools, such as Canva.
2. LinkedIn profile – as we all know, LinkedIn is the place for business networking. Use it to leverage your personal brand by creating a standout profile that helps you stand out. Connect with contacts old and new and forge relationships that could potentially lead to job opportunities…
3. Research away – while it may be tempting to panic as soon as you know you’re being made redundant, resist the temptation and channel your energy into some proactive research instead. What do you want to do next? What other roles are there that are similar to yours? What opportunities are there for you to try something different?
4. Leverage your skills and experience – take stock of all you have to offer (you may find you naturally do this while you’re working on your CV and LinkedIn profile). What are your core skills? What makes you stand out from other candidates? What’s your USP? What can you offer prospective employers? Be clear on your offering and be proud of what you’ve achieved so far.
5. Build valuable industry connections – reach out to existing contacts, such as former employers and colleagues, as well as other connections who may be able help you find new work, such as next level Recruitment! These interactions will help you stay motivated and feel supported. For instance, by giving you guidance on refining your CV or how to prepare for face-to-face or virtual interviews.
You never know what’s around the corner, and if you are made redundant, it’s important to remember it’s not the end of the world. Depending on where you are in your career journey, it could be the turning point you need to wind up in your dream job or take stock of what you’re doing now and what you want to do next. Don’t be disheartened, do be proactive and don’t forget to reach out to us for guidance and support if you need it.