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Employment

What to do if you’ve been made redundant

We ask the experts how to find our what you may be owed in redundancy pay before moving onwards and upwards

Redundancy is daunting. Workers are untethered from their regular income and routine, leaving them navigating anxiety, stress and uncertainty.

The good news is that now is a great time to be looking for a new role or to consider retraining in a new sector. 

So, what should you do if you are made redundant? The Big Issue spoke to experts on what action you can take — to retain stability and ring-fence your income.

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So what should you do if you are made redundant? The Big Issue spoke to experts on what action you can take — to retain stability and ring-fence your income.

I’ve just been made redundant – what is the first thing I should do?

Don’t take it personally.

“First thing’s first, take a deep breath and recognise that being made redundant is not your fault,” Andrew Hunter, co-founder of jobs board Adzuna, said. “It’s your job that’s been made redundant, not you.”

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Nearly 70,000 people were made redundant in the three months to August 2022, according to the Office for National Statistics), “so many others are in the same boat,” Hunter added. “This is not personal.”

Then, it’s time to check that you are being treated fairly.

“Losing your job may have substantial financial consequences for you and your family,” Hunter said, “so it’s vital to check and understand what you are entitled to and make sure your employer is following the guidelines.”

What am I entitled to if I’ve been made redundant?

Your first port of call is The Big Issue’s redundancy rights guide. You’ll find heaps of useful information on asserting your rights with employers.

“If you have at least two year of continuous service, you are entitled to a statutory redundancy payment. Some employers add additional elements, such as support with outplacement,” Catalina Schveninger, chief people officer at online training platform FutureLearn, told The Big Issue

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Every company has its own redundancy procedure, Hunter said, “but you can only be made redundant for three reasons: if a business is closing entirely, if the location where you work is to be relocated, or if the specific work that you carry out is no longer required.”

But remember: “It’s also worth noting that if your employer has offered you a suitable alternative job within the business and you refuse to take it, you may not be able to get any form of statutory redundancy pay,” Hunter added. Redundancy pay, linked to age, can be confusing.

When it comes to assessing payments, it’s all about working smart with the right tools. You can use the government’s redundancy calculator to find out how much statutory redundancy you are entitled to, based on your age, weekly pay and number of years in the job.

My redundancy pay is wrong, what should I do and who can help?

The Advisory, Conciliation and Arbitration Service (Acas), an independent public body, offers free impartial advice to employees on employment rights, rules and best practice.

If you spot something wrong, first of all, Shinn recommends, try and clear up confusion with your employer internally. Then, if that doesn’t solve the problem, you must tell Acas that you intend to make a claim to the tribunal.

At this stage, Acas will help employees and employers try and settle disputes. The aim is to avoid the need for a tribunal that could heap on more stress. “It can be a very emotionally costly thing to go through a tribunal process,” Shinn said.

The main thing to remember is you are not alone. Organisations like Acas and Citizens Advice are there to support people going through a redundancy dispute and attempt conciliation. As many as 70 or 80 percent are settled before going to tribunal, Shinn estimated.

“There are lots of opportunities to try and sort it out before you end up in an ultimate court of law,” she said.

How do I find another job after being made redundant?

Redundancy can be the opportunity for a new start as well as the end of an era. So how should you get back out there?

“Now is the time to get battle ready,” Hunter said. “That means dusting off your CV, polishing your online presence, and defining your skillset.”

In your CV, “It’s important to include power words that highlight your most valuable skills and demonstrate what you have achieved, said Carol Hobbs, principal branch manager at Adecco UK, a recruitment firm. “Your covering letter is a great way to highlight your soft skills, which you can draw upon further should you be asked to interview.”

Redundancy can also be a chance to upskill;“The best place to start is to be as proactive as you possibly can and take your career development into your own hands,” said Schveninger

“Whether that’s taking the time to strengthen and deepen the skills you already have, or perhaps gain new skills that will help broaden your opportunities, actively taking the time to develop yourself is never a bad thing.”

Finally, Hunter added, you should always keep your head up. “The best advice we can give is to stay positive, stay friendly, and keep an eye out for openings.”

Good news: now is a great time to be looking for a new job

The UK is currently facing huge labour shortages, which is bad news for industries on the whole but good news for job seekers. There were more job vacancies than there were unemployed people for the first time ever in May, when the number of job vacancies rose to a record of 1.3 million. This means there are fewer applicants for each vacancy, and gives you better odds of nabbing the role you want.

With more vacancies available, employees have felt empowered to switch jobs in record numbers to find something better. And in turn, this has prompted many employers to do more to attract new talent.

Tony Wilson, director of the Institute for Employment Studies, said employees are “getting more power in the workplace”, with firms finding it hard to recruit and “having to try really hard to attract people and keep people.”

All of these factors make the jobs market a reasonably welcoming place to someone looking to find work. Roles from prison officers to scaffolders, paramedics to plumbers are in high demand, so now could be the time to retrain. 

But this doesn’t mean that it’ll be easy. You’ll still need to find the most suitable roles for you, write a stand-out CV and practice those job interview techniques

Hunter’s final piece of advice, however, is to always keep your head up. “The best advice we can give is to stay positive, stay friendly, and keep an eye out for openings.”

Career tips and advice from our Jobs and Training series:

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