A redundancy payout is essentially compensation for your loss of work. Here’s how it works: You get statutory redundancy pay as a minimum, provided you’ve worked for your employer for two years or more. The limit is currently £538 a week (£560 in Northern Ireland) if you were made redundant on or after 6 April 2020.
Are there any jobs for people who have been made redundant?
If you are serious about moving jobs beforehand, the Department for Work and Pensions has recently launched a Job Help portal. This includes advice for jobseekers and those facing redundancy, and lists over 66,000 jobs currently available.
How does being on furlough affect your redundancy rights?
Coronavirus and its knock-on effects DO NOT affect your statutory redundancy rights, which are written into employment law. A new law passed by the Government and effective from 31 July 2020 means that being on furlough will not affect your statutory rights to redundancy pay or the relevant amount of notice.
How long do you have to work before you get statutory redundancy?
After two years with your employer, you’ll qualify for a minimum statutory redundancy payment. If you’ve worked there for less than two years, you’ve no right to any recompense. For those who have at least 24 months’ continuous service, your entitlement depends on your age and longevity at the company.
What to do if you have been made redundant in your 60s?
Think first and spend later! It is first and foremost important to avoid denial about your money position. If you have been left not knowing where your next loan repayment is coming from, don’t stick your head in the sand. Talk to your bank or lender and explain the circumstances.
When do you get redundancy pay if you are made redundant?
If you’re made redundant on or after 31 July 2020, the rules make clear that any statutory redundancy pay you’re due MUST be based on your normal wage.
What’s the first reaction to being made redundant?
Redundancy can be one of the most traumatic life events you will ever experience and this ‘money trauma’ triggers a very real emotional response. Unfortunately many people’s first reaction can often be to panic and start making big money decisions.
What to do if you are made redundant in the public sector?
The same’s usually true if you take voluntary redundancy, so check first. If you think your job may be at risk talk to your employer and find out how high the risk is. It’s unlikely a rumour of job losses, even if it’s through a government announcement if you work in the public sector, will count as notice but be aware, many grey areas exist.
