Redundancy in 2021

As the furlough scheme is coming to an end at the end of September, some people may be concerned that they are at risk of redundancy.

If you have been made redundant, you’re concerned you might be, or even if your job feels relatively safe right now, it’s important to know your rights and what it is you’re entitled to. And if you’re already dealing with debts, you might be worried about how redundancy will affect your ability to cope – but don’t panic.

Redundancy can be a big change in your life, but it’s not the end of the world. And the more you know about how being laid off works, how to enforce your rights, and how to deal with your debts, the better you’ll be prepared to handle it. Here’s our round-up of where to find all the information you’ll need.

Your rights

You can find some information about your employment rights when it comes to redundancy right here on our website. But this is a complicated area. To check that your employer has followed the right process to make you redundant, including giving you the notice period and redundancy pay you’re entitled to:

• check your employment contract if you have one, as it may differ from the statutory guidelines
• read the articles under ‘Redundancy’ on the Citizens Advice, Money Helper or gov.uk websites
• speak to your trade union. If you’re not a member of a trade union, consider joining one: you can find the right union for you on the TUC website.

If you’ve been furloughed, here are a couple of things to remember:

• If you’re entitled to redundancy pay, it should be based on your usual full wage, not your furlough wage if that’s lower.
• If you’re still on furlough, your employer still has a responsibility to hold the same redundancy consultation period with you and your colleagues that they would have done if you were all at work.

If you don’t think your employer is carrying out redundancies fairly, speak to your trade union or call the Advisory, Conciliation & Arbitration Service.

What to do about your debts if you’re made redundant

Even if you’ve been managing to pay all your debts, redundancy is often a sudden change in circumstances that can lead to problem debt. And because it may lead to a period of financial uncertainty, for example while you’re looking for a new job, it’s sometimes hard to begin sorting out your debts.

If you’re one of our Debt Management Plan, IVA, Trust Deed or DAS customers, and you receive any news that will change your financial situation, please let us know so we can help. It’s what we’re here for. We use a free, independent benefit checker to find out whether you can get any financial support while you’re out of work.

We can also make sure this change in your circumstances is factored into your debt solution. Depending on your situation, we may be able to arrange a payment break or a reduction in your payments. And we can explain how any redundancy payment you might receive will affect your debt solution. (Our IVA customers should keep in mind that there is a windfall clause written into the terms of their contract. Please don’t worry about this and we can discuss this with you in more detail. However, if you were to find work immediately following being made redundant, some of your redundancy may need to be paid into the IVA.)

If you don’t currently have a debt solution with us, you can find a benefit calculator on the government website, and sources of free debt advice on the Moneyhelper website. It’s important to get expert advice as quickly as possible.

Where to get further help and information

About your rights if you’re made redundant

• ACAS can help with all employment rights issues: call 0845 747 4747
• If you are a member of a trade union, then speak to your workplace rep, shop steward or contact your union directly.

 Looking for a new job

Try to stay positive – redundancy is often a valuable opportunity for a fresh start. But we understand that finding a new job can be a daunting prospect. Here’s a checklist of where to look for job opportunities and career advice.

• Job listings:
  • You can find thousands of jobs on the government’s website at gov.uk/find-a-job. Your local council’s website may also have job listings for your area. Some councils are even conducting virtual careers fairs.
  • Check the websites of local and national newspapers.
  • You can find a list of recruitment agencies on the Recruitment & Employment Confederation – this includes agencies that can help you look for work matching your particular sector or skill set.
  • If you graduated from university within the last few years, get in touch with their careers service.

• Skills for your search:
  • If you’re new to jobhunting online, learnmyway.com can help you find your way around. And if it’s time to refresh your CV, you can find an online CV builder on the National Careers Service website. You can build a bilingual CV on Careers Wales.
  • Job interviews can be stressful at the best of times, and social distancing adds extra challenges. If you’ve never taken part in an interview by phone or video before, it’s a good idea to be prepared. For advice, check out Prospects.

If you need mental health support

The Mental Health Foundation website has lots of useful information about how to take care of your mental health and where to get help if and when you need it.