Redundancy and unemployment

Where can I find advice if I am at risk of losing my job or have been made redundant?

The thought of redundancy can come as a shock and can raise all sorts of anxieties for individuals and their families The following are a series of questions that are there to help you make sense of the current situation you find yourself in. They have been complied by others who have found themselves in similar situations and recognised that addressing these questions has helped them to find appropriate solutions and a way forward.

A change of circumstance due to redundancy and unemployment has multiple and far-reaching consequences, some of which we are ready to address and some of which we may initially prefer to ignore. Read the questions and consider which you need to address at present. We have divided them roughly up into sections and each section into before, during and after redundancy but clearly there is always overlap between these sections. There are no right answers but recognising the questions might help you to find useful ways forward.

Before redundancy

What is your Legal position?:

  • What period of notice is required?
  • How will your pension be affected?
  • What are the tax implications?
  • Can you return as a part-time member of staff? If so when?

More information can be found via these external websites:

Facing redundancy, TUC

Facing redundancy, Telegraph Jobs

Q&A: Losing your job, Guardian

During redundancy

What else you need to consider:

  • Do you have mortgage protection?
  • How much per week do you need to live on?
  • Can you reduce this amount?
  • Economic factors. Have you considered getting financial advice?

More information can be found via these external websites: 

The redundancy handbook, the Money Advice Service 

Entitlement to redundancy pay, DirectGov

Redundancy - procedures your employer must follow, Citizens Advice Bureau

 

Practical tips

What ways would you like to spend your time?

Where can you look for future employment?

How will you get back into work?

How will you maintain a network of professional colleagues? Linked in?

 

More information can be found via these external websites:

Rebuilding your life after redundancy, newlifenetwork.co.uk

Redundancy fact sheet, HRMC

Life after redundancy, jobs.ac.uk

 

Next Step careers advice

Next Step is the government careers advice service that aims to help you move forward in your work. Online, telephone and face-to-face support is available.

 

Your human resources department

You might also want to contact your human resources department. They will be able to explain your contractual rights and your employers’ redundancy policy and procedures.

Your employer may also offer confidential employee counselling, support or information services as part of an Employee Assistance Programme (EAP). What is an EAP?

Some employers will engage outplacement specialists who can advise you on searching for a new role. What is outplacement?

 

Are there any alternatives to redundancy that my employer might consider?

Employers managing redundancy should try to avoid or minimise compulsory redundancies by exploring other ways of reducing costs or reducing staff numbers. Here are some examples of options your employer could consider in order to avoid redundancy:

  • reducing overtime
  • terminating the engagements of any temporary agency staff
  • ceasing sub-contract work
  • freezing recruitment or secondments
  • retraining and redeploying staff into other roles
  • reducing hours of work (but only with employees’ agreement)
  • cutting or stopping bonus payments (taking care not to act in breach of contract)
  • offering sabbaticals, or unpaid leave

Where do you stand?

Employees are entitled to redundancy payments if they are dismissed due to one of the following:

  • The employer has ceased, or intends to cease, to carry on the business for the purposes of which the employee was so employed
  • The employer has ceased, or intends to cease, to carry on the business in the place where the employee was so employed
  • The requirements of the business for employees to carry out work of a particular kind has ceased or diminished or are expected to cease or diminish
  • The requirements of the business for the employees to carry out work of a particular kind, in the place where they were so employed, has ceased or diminished or are expected to cease or diminish

What is redundancy pay?

You have the right to a lump sum 'redundancy payment' if you are dismissed because of redundancy. The amount is related to your age, length of continuous service with the employer, and weekly pay up to a maximum. The employer must also provide you with a written statement showing how the payment has been calculated at or before the time it is paid.

Any dispute about whether a redundancy payment is due, or about its size, should be resolved within the organisation, if at all possible. Failing this, and as a last resort, it can be determined by an employment tribunal. If your employer has cash-flow problems so serious that making the redundancy payment would put the future of the business at serious risk, the Redundancy Payments Service (RPS) can arrange to pay you direct from the National Insurance Fund. If your employer is insolvent, the RPS makes the payment and the debt is recovered from the assets of the business.

Information on unfair Redundancy:

You will be found to have been unfairly dismissed if you were unfairly selected for redundancy:

  • On parental leave or maternity-related grounds
  • Because you work part-time
  • Because you are a fixed-term worker
  • For requesting flexible working arrangements
  • For a reason relating to rights under the Working Time Regulations 1998
  • For a reason relating to rights under the National Minimum Wage Act 1998
  • For Whistle-blowing
  • For participation in trade union activities, for membership or non-membership of a trade union and in respect of trade union recognition
  • For carrying out duties as an employee representative or candidate for election for purposes of consultation on redundancies or business transfers
  • For taking part in an election of an employee representative for collective redundancy purposes
  • For taking action on health and safety grounds as a designated or recognised health and safety representative, or as an employee in particular circumstances
  • For taking part (or proposing to take part) in consultation on specified health and safety matters or taking part in elections for representatives of employee safety
  • For taking lawfully organised industrial action lasting twelve weeks or less (or more than twelve weeks in certain circumstances)
  • For performing or proposing to perform the duties of a occupational pension scheme trustee 
  • For performing or proposing to perform the duties of a workforce representative for the purposes of the Transnational Information and Consultation of Employees Regulations 1999 or if the selection criteria employed were deemed to be discriminatory under any of those grounds prohibited by law.

How will your pension be affected?

Facing redundancy, TUC

Facing redundancy? Having to buy that pension annuity early?, Right annuity

 

Where can I get advice regarding my employment rights? 

The Advisory, Conciliation and Arbitration Service (ACAS) helpline provides clear, confidential, independent and impartial advice to both employers and employees involved in an employment dispute or who need information on employment rights and rules. Visit the ACAS website. 

Other contacts that may be useful include:

Association of Teachers and Lecturers

University and College Union 

The UK qualifications and skills team, Learning and Skills Improvement Service (LSIS)

Association of Managers in Education (AMiE) 

Where can I find information on searching and applying for jobs?

Find job search and application information here.

Where can I find information on Jobseekers Allowance and other benefits?

Job Centre Plus provides a wide range of information including benefits and help with finding work.

Can I remain a member of IfL even though I am unemployed?

If you become unemployed you can opt for unemployment member status which has a reduced fee of £25. You will still be required to declare at least 6 hours of continuing professional development (CPD) each year. You will need to select self funded as your funding status and payment preference when you login to MyPages. Find out about the benefits of remaining an IfL member.