If you are unfortunate enough to be made redundant, refer to your employment contract as you may benefit from a company redundancy policy if not you need to see if you qualify for statutory redundancy.

Entitlements

Am I entitled to a redundancy pay-out?  To qualify for statutory redundancy you need to have at least two year’s continuous service. The maximum amount of continuous service that can count for redundancy pay purposes is 20 years and the current maximum weekly amount of statutory redundancy pay is £350.

How much will my pay-out be?  It depends on your length of service and your age when those years were being worked, so you would calculate your statutory redundancy as follows:-

• ½ week’s pay for each full year of employment whilst being 21 years old and under
• 1 week’s pay for each full year of employment whilst you are 22-40 years old
• 1.5 week’s pay for each full year of employment whilst you are 41 years old and above

There is a legal requirement for your employer to give you a written statement showing the calculation of the redundancy payment.

What if my employer cannot pay? 

If your employer goes bust you can claim your statutory redundancy pay out from the Government.  Ask your employer’s representative (liquidator, trustee, receiver etc) for an “RP1” form.

What notice period am I entitled to? 

Statutory notice from your employer is one week’s notice after one month’s employment but less than 2 full years of employment.  After 2 full years of employment the amount of notice increases by one week per full year of continuous service up to a maximum of 12 weeks. However, please refer to your contract of employment in case longer periods of notice apply.

Trying to find a new job can be extremely difficult at this time however, once the shock of being made redundant has worn off you need to try and maintain a positive attitude and focus.  Once you are focussed on your job search, you should target companies and areas of the market that are expanding as opposed to approaching vulnerable sectors of the market, that could prove to be a short-term fix.    Identify your skills, knowledge, and experience and recognise your transferable skills and highlight these in your CV or covering letter succinctly so that employers are clear about what you can offer. 

Practice and brush-up on your interview technique in order to come across as a credible and desirable future employee. Also remember that you may need to attend lots of interviews and this can take time.

Finally be prepared to compromise and negotiate, it may not be possible to get your perfect job, but nevertheless you can still get a great job in a recession.