Redundancy is currently an unpleasant prospect for many people, due to the impact of the COVID-19 pandemic, with an estimated 600,000 employees dropping off the payroll in May compared with the two months previously.
With the Government’s support schemes set to end over the next few months, the likelihood is that many more redundancies will take place, as many businesses continue to struggle with the impact on day to day operations.
Redundancy brings many anxieties, such as worrying about how you will make mortgage payments, the stress of finding a new job, especially in these uncertain times, and can even put a strain on your relationships at home.
We have pulled together a helpful guide on how to deal with the prospect of being made redundant. And it’s not just for those who have already lost their job or been given notice of termination – in the current climate, it’s sensible for everyone to consider how they would be affected by a loss of employment and have a contingency plan in place.
Firstly, how does the Government’s furlong scheme affect your statutory rights as an employee?
The current scheme supports, rather than replaces, your rights as an employee and being furloughed doesn’t affect your statutory rights to a consultation period. A consultation should be given at least 30 days before providing any employee with a redundancy notice, the redundancy notice being the statutory notice detailed in your employment contract. Any redundancy payment should be in line with your regular wage and not your furloughed salary if this is different. If you have unused holiday allowance, this should also be included in your final pay.
If you think there is a possibility of redundancy in the future, it is sensible to take some positive steps now, to reduce the impact later.
If you have any savings, use them to pay off or reduce any outstanding debts and check out any mortgage help schemes that may be available from your mortgage provider. You could enhance your current income by selling some unwanted items, such as your old CD collection, and review your current outgoings to see if there is anything that can be reduced or removed.
While the current climate is not ideal for finding a new job, do not be complacent. Sign up to a recruitment agency, and regularly check for new vacancies. And do not be afraid to ask if work is available – if you don’t ask, you’ll never know! Use your time to brush up on your interview skills and review your CV. Now could even be the right time to explore a different career path if you were not 100% happy in your current or previous role.
There are many organisations who can offer help and advice in the event of redundancy. If redundancy happens to you, we recommend contacting the following services:
ACAS – The Advisory, Conciliation and Arbitration Service offers free advice to both employees and employers for any issues relating to employment.
Citizens Advice Bureau – A local service that can offer advice and support on redundancy and dealing with debt.
And of course, there at CareerJuice, we offer free recruitment help, advice and support, so please do not hesitate to get in touch.