Redundancy Money Management

Coping with Redundancy

Being made redundant can wreak havoc with your self-esteem, your professional record and your financial situation. Coping with redundancy can be especially difficult if you have a family that is currently relying on your finances to help put food on the table and to pay the bills, and it can be an extremely stressful time no matter how much you’re earning or what your job title used to be. However, coping with redundancy is possible if you have the right mindset, and here, we’re taking a look at how you can cope.

Know Your Rights

If you’ve been made redundant it is important to check what you’re entitled to, as all employers are entitled by law to follow a set of principles when going through a redundancy procedure. Firstly, you should have a written explanation as to why you are being let go, at least a week’s notice if you’ve been employed for between a month and two years, union representatives, and the opportunity for alternative work in the organisation. This will allow you to better prepare for the future.

Understand Redundancy Pay

If you have been with your company for more than two years then you may be entitled to redundancy calculated by the employer, and a written statement on how the employer calculated the amount. There will be a number of factors that impact redundancy pay, such as age and the length of time at the company. If the reason for redundancy is due to the office going into administration then there are other ways that you may be able to claim your redundancy pay. Redundancy pay may really help you and your family to deal with your redundancy and help to put you in a better position than you may have first thought you could be in. It is important to understand the terms of your redundancy pay however and know whether or not you are entitled to it.

Plan Your Finances

It is important that you draw up a whole list of your outgoings and all of the things that you need to spend your redundancy pay on, so you know not to blow it all at once. Working out a budget moving forward on any form of income that you may be receiving is a must. Whether it’s a low-income part time job or job seekers allowance, this can really help you to survive.

Coping in this difficult time

Knowing how far your money will go will help to ensure that you are able to determine how long you can dedicate to finding a new position at a new company. Income support or Jobseeker’s allowance should also be available depending on your current position, so make sure that you seek support to find out more.

Don’t Worry

If you’ve recently been made redundant but found work again, that’s great. You may need help paying off some of the built up bills/debts that may be getting you in financial difficulty, a short term loan might be able to help – as long as you are able to pay it back. Spread the cost over a few months whilst you get back on track.