Some people view it as a blessing, while for others it’s the worst thing that could possibly happen to them. Unfortunately, particularly with the economic climate unstable to say the least in some parts, a redundancy package is a distinct possibility for many people.
The good thing is that a lot of people only go through the process once through their lifetime. While it’s something that can affect many people, the chances of it affecting you on more than one occasion are slim, to say the least.
However, if you do fall into the redundancy category, you need a plan of action. After all, your income has been immediately eradicated, and you, therefore, need to plan accordingly. Let’s take a look at some of the things you should be looking at if the redundancy package has crept up on you.
The hunt for a new job
This first stage is going to vary among many people. If you have clocked up years of service, there’s every chance that you might be able to buy yourself a bit of time to luck for that perfect replacement job.
If you are in something of a rush to find a new job, you should check out this app to find immediate start jobs. Sometimes these will be on a temporary basis, while other times they will be more permanent. Either way, it is an immediate source of income, which needs to be your priority at the moment.
If you have been with your employer for at least a couple of years, there is an extra consideration here though. In these cases, you are entitled to look for a new job during working hours. Additionally, you don’t even have to make the time back up, so there is a lot of flexibility in this regard. The rules state that you can take “reasonable” time off to do this, which is of course very subjective. You should also be wary that a lot of employers are unaware of this law, so it pays to speak to them and perhaps show them the relevant documentation so that you are not met with any problems.
How much money are you owed?
Another important point is obviously the amount of money you are owed. This will incorporate your redundancy package, as well as your last salary, holiday pay, bonuses, and any pay in lieu if you are not working the full notice period.
It’s also worth mentioning that you will not pay tax on the first £30,000 of your redundancy package.
Can you claim any benefits in the meantime?
While redundancy pay can help tide you over for the short-term if you are finding your job hunt particularly difficult you may have to turn to benefits. The types of benefits you can apply for will vary case-by-case, but Jobseeker’s Allowance, Housing Benefit, and Working Tax Credits are some of the common examples. Furthermore, even if you have been made redundant from a high-paying job, you should still be entitled to something.
