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With unemployment at 2.49M, and job cuts in almost every sector, UK workers are fearing for their job security. Good money management today will ease the stress for leaner times potentially on the horizon. Be even more prepared and take a few minutes to read over this advice on how to deal with redundancy. You'll be thankful if you find that your head is next on the chopping block.
Legal Expenses Insurance
The cheapest way to get legal expenses insurance is as an add-on to a home insurance policy. Check with your insurance provider to see if this is included in your policy. This will help with expensive legal fees if you have to take your case to court.
Notice or Pay-in-lieu
You are entitled to statutory redundancy pay. Whether or not you are asked to work your notice period, you should receive pay for this period. Check your contract for these rights if they aren't offered to you.
Unfair Dismissal
You should be consulted individually by your line manager or a representative of the company. Read your employment contract and staff handbook carefully, and ensure that your employer sticks to proper procedure. If they do not they are violating your terms of employment, and you have grounds to claim you were unfairly dismissed.
Dismissal Meeting
The terms of your severance package should be offered to you at your dismissal meeting. Don't agree or disagree to any terms during this meeting, but ask for everything in writing. This will help keep the record straight if any legal action or negotiation is required.
Transitional Benefits
If you have benefits like life cover, medical insurance or family income protection provided by your employer, ask if these benefits can be continued for a period after you leave, to prevent you losing your cover while unemployed.
Make Use of Share Options
If your employer provides share options, they may lapse after you leave. If you feel their value will rise over the short to medium term, you might want to exercise your option while you still can.
Pension Accrual
If you have been paying into a work pension, make sure the money you accrued is included in your severance package. If you're looking for ways to save money on income tax, you might also want to consider putting some of your redundancy pay directly into your pension.
