Why You Need Redundancy Protection

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Most of us are facing redundancy right now. This can make it very difficult to feel secure. Panic can set in and people freeze to pretend everything is okay. There are many things you can do in order to regain control of your life.

The UK’s job situation is getting worse. Now is the time to look into Redundancy Protection. In September, the number of people who claimed Job Seeker’s Allowance increased by 31800 to 939,900. This was the eighth consecutive monthly increase.

Mervyn King, the Bank of England governor, expressed concern over rising job losses. Gordon Brown finally admitted that a recession was possible. We all knew that. Although you may not have to go through redundancy, many people will. If it does happen, you need to be ready. This guide will help you navigate the redundancy process.

It happens

You’ll feel either paralyzed, angry, or shocked when they tell you that you have to “let them go”. You’ll likely feel crazed and confused. Once you’ve had some time to recover, remember these:

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Ask the reason for making you redundant. It may not be possible to change it but you will know what happened.

Write down all the information that was said in meetings with your boss. Although you may believe you will remember everything, the likelihood is that your head will be so muddled you won’t be able to recall it all.

Do not sign anything unless you have been told. Give yourself time to reflect on what has been said.

Next stage

While you may want to hurry home, you should first get some information.

* P45,

* Written details about your redundancy package. These should include details on how your benefits were calculated as well as information on your pension rights and details of any paid vacation entitlement.

* Who to Contact: Your manager, your trade union representative (if one exists), and your contact at the human resources department.

* If you need to leave

When you feel calmer, you will be better able to face any unfair dismissal.

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Your rights when you are made redundant. Your employer should inform you immediately which of these circumstances applies.

1. Your notice period must be worked out

2. Notice must be served at your home

3. You will be paid in lieu of notice.

Redundancy pay: You are entitled to redundancy if you have worked for your employer for at most two years.

The legal minimum wage for redundancy at the time of writing is:

* Half of a week’s salary for every complete year of service under the age of 22

* For every year between 22-40, one week’s salary

* 1/2 week’s pay for every year beyond the age of 41

* The weekly statutory redundancy pay is currently capped at PS330.

* Tax-free first PS30,000 of redundancy payments

Tax rules can be complicated so it is important to seek advice. Unpaid wages, for example, are still taxable. The HMRC website has a great fact sheet about redundancy and Redundancy protection.

Agreements between companies

Larger companies will often offer redundant packages that exceed the legal minimum because they have their own terms. Redundancy counseling can be offered by some firms to assist you during this difficult time. One thing to be aware of is the possibility that companies offer an additional lump sum payout. This is probably a nice offer, but you should be wary of any redundancy processes that may have been flawed. Talk to an expert in employment law to determine where you stand. They may be able negotiate a better offer, you never know.

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You may be eligible for Redundancy Protection.

You will have already taken out Redundancy Protection if you had planned ahead. Get in touch with your insurance company immediately to get all the details they require. This can be a lifesaver, as it takes the pressure off. You will not be covered if you even have an inkling of redundancy. Don’t wait too long. If possible, get help from a broker to negotiate a great deal and clarify what you are covered. Avoid single premium protection.