Northamptonshire Chamber : Coping with redundancy

Whilst the UK unemployment rate has fallen to its lowest rate in more than 10 years, it has not been all positive news in Northamptonshire.

In December it was reported that the majority of the 450 employees of Fairline Boats, based in factories in Corby and Oundle, had been made redundant after the company entered administration and this was followed in January by the news that jobs will likely be lost at Tata Steel's plant in Corby.

If you are selected for redundancy and lose your job it can be a devastating blow. If you are worried that you might lose your job here are some steps you should take:

1. Talk to someone - ensure that loved ones know that you are worried and talk through with them whether a redundancy is likely to happen, what you can do to avoid it and how you might cope if the worst does happen;
2. Know your rights - employment laws mean that employers have to follow strict procedures before making redundancies, including consulting with affected employees and ensuring the process is fair and objective. Checking your rights will help you to take back some control of the situation;
3. Check your contract of employment - this will often set out clauses that provide you with protection or explain how much compensation you might be entitled to - notice pay is payable to employees even if they do not have two years' service with their employer;
4. Consider other roles in your organisation that you might be able to do - employers are under an obligation to try to find you alternative work in the business if they are able to;
5. Think about whether or not you would want to take voluntary redundancy if it was offered - working out what you might be entitled to by way of redundancy payment can help you to decide whether you can afford to put yourself forward;
6. Take advice - there can be ways to challenge redundancy decisions made by employers or to structure payments so that they are as tax efficient as possible (and so more beneficial to you). Looking at your options before you accept a payment can make a financial difference to you in the long run;
7. Plan your finances - it may be that a redundancy will be the push you have been waiting for to do something different. The redundancy payment may be a welcome lump sum. On the other hand, you may be worried that you will not be able to pay your bills. Either way, looking at how much you might receive and what you need will allow you to start planning for the coming months - working out whether to book a trip of a lifetime or to check on what state benefits you might be entitled to claim;
8. Look at other jobs - finding out what other jobs are out there can help you to start thinking about what you might do next if you are redundant.

The Employment Law Team at Wilson Browne Solicitors has a wealth of knowledge that you can use to ensure any redundancy that you are involved in can be as advantageous to you as possible.

For more information or to discuss your particular concerns, please contact Steven Conway on 01604 876697.

Posted by: Wilson Browne Solicitors

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