Dealing with redundancy - video transcript
There is never a good time to be made redundant, and this will undoubtedly be a period of time of stress and uncertainty for you and your family. Try to remain positive however, because with the right guidance you can soon get back on track.
What can I do when facing redundancy?
The first step is to draw up a budget so you get absolute clarity about what you have coming in and what commitments you have going out. This will help you take stock of your finances.
There are a number of steps that your employer will have to take in making you redundant, and there's information that you'll want to know.
As a first point of call, speak to your manager and explore whether there are any other opportunities in the company.
If there aren't, you will then need to find out what your entitlements are. For instance, how much redundancy pay will you get and when exactly would this be paid into your bank account. You will need to understand what happens with your pension, and also what notice period you're on. It is also worth exploring with your employer whether they are able and willing to let you have time off to attend interviews, or indeed, whether they will help you in any retraining that you'll want to do.
It's going to be very important however, to make sure you get the best possible reference from your employer, as this is a key step in getting another job.
What can I do to sort out my finances?
Now that you've got a greater understanding of your finances, there are a number of things you can do to put them in order.
First of all, find out if you're entitled to any state benefits or tax credits, as this could increase your income. Whilst it may not seem like a lot, every little will help.
Take another look at your budget plan to see whether you can prioritise your commitments. At a time when you've got less coming in, you'll undoubtedly want to look very hard at everything going out and make savings where you can. Some examples to look at are:
- Could you move to cheaper utilities? Some utility providers for instance allow you a discount if you pay by direct debit so it's worth exploring this.
- You may also want to have a look at your mobile phone contract and whether it's worthwhile transferring to a pay as you go, rather than get caught up in a lengthy twelve or eighteen-month contract. This will also avoid you potentially running up a large unforeseen bill.
If, at the end of the day you are really struggling to meet your commitments and you want some guidance around debt management, there are experts who can help, such as the Citizens Advice Bureau and the Consumer Credit Counselling Service. Remember, they are here to help you, so please don't be afraid to get in touch with them.
What if I can't make my mortgage payments?
Your mortgage will be very important to you, as the last thing you want to do is to put your home at risk.
- So contact your mortgage provider straight away, as there are things they can do to support you, such as agree a new repayment plan. Or they may also agree to extend the period over which you repay your mortgage, therefore, reducing your monthly payments.
- You may also have a mortgage protection plan. If you do, contact your provider straight away and find out how you make a claim.
- And remember, there are a number of government schemes out there to help and support you with your mortgage. For instance, there's 'ISMI' which is Income Support for Mortgage Interest. This is available to anyone on Income Support, Pension Credit or Jobseeker’s Allowance.
- There's also the Homeowners Mortgage Support scheme, which is available to those people who do not qualify for income support, but who find their income reduced through unemployment or a reduction in their salary.
- And lastly there's the Mortgage Rescue scheme. This is available to those families most vulnerable to having their homes repossessed.
If you want to find out information about any of these schemes, you can go to the Direct Government website or alternatively, speak to the Citizens Advice Bureau. You could also find this information is available on your local council website.
What can I do to get back to work?
It is a good idea to look at trade magazines as well as the local and national press. There are also a great number of websites out there which will help you search for a job by specific skills or in a specific sector.
And the recruitment agencies are well worth talking to because they're long established in the recruitment market and they can help you in a whole host of ways.
And please don't rule out temporary work as these can often lead to future opportunities.
What measures can I take for the future?
The key things to remember when planning ahead are:
- Keep a budget.
- Put some money aside for a rainy day.
- Look for the right insurance policy for you.
Hopefully, these will just be precautions, but you'll be thankful that you've prepared should the worst happen.
Redundancy at a glance
There is a lot to take in, but here are some key steps to guide you through it:
- Talk to your employer about your entitlements.
- Take stock of all your commitments.
- Act quickly to get back on your feet sooner.
If you plan now, you will be prepared for the future.
Important legal information
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