The Great 'What to do in the event of redundancy' Hunt

tallbird_2

I didn't bother signing on as I thought my savings would mean I wouldn't get any benefits. However I have since discovered that I may get some payment based on my contributions and NOT signing on can affect all sorts of other things.

If claiming the statutory Govt payout "in lieu of notice" you claim may be invalidated if you don't sign on. According to the lady in the Job Centre today the Govt deduct from this notice payment an amount equivalent to JobSeekers Allowance whether you sign on for it or not, so you could actually lose money.

Also your NI is paid for the period you sign on which could be important if you have gaps in your NI payment history (living abroad in my case).

It really isn't that bad and much of it is done on the phone anyway now. Beware though - it's a 30-40 min call to an 0845 number which can be pricey from a mobile but they will phone you back if you ask them.

parkysaves

I have read all these posts with interest and am lucky enough myself to be in a (fairly!) secure job in these current times.
A relative of mine, however, was made redundant 6 mths ago from the housebuilding business.

I have read alot of people saying you can do anything if you're willing to work and get out there and get any job etc etc.

My relative is in a way an exception to this rule and indeed an example of the saying "the higher you are, the further you have to fall". He was earning an exceptionally good wage in a very high paid job. He went from that to nothing virtually overnight. Half his mortgage is covered by PPI but his wife is having to pay the rest on her wages.
He signed on but has now been told he cannot claim anymore as over the 6mth limit. (mmmm ..... wonderful benefits system!!!! dont get me started)

What I suppose I am getting at is he is in a catch 22 situation. If he gets a job and then is made redundant or leaves, the PPI won't pay his mortgage a second time. So he cannot risk taking something then getting made redundant again as they couldnt pay the mortgage. The house has been on the market for a while and not selling.
Plus he needs to get a job where he is earning up to or near his previous one or they still can't pay the mortgage.

It is a nightmare. He studied at school, spent 6 yrs at Uni, worked since he left every day of his life and doesnt have a vastly extravagant lifestyle and is now in a worse situation than he could ever have imagined.
It is so sad.
And I suspect he is not alone.
It seems at the moment it is easier to find unskilled jobs and those in the unforunate career areas that are struggling will have to ride what I think is going to continue to be a very bad storm.
Best Wishes to everybody going through this and let's hope something starts to turn around soon. :T

Emielou

If you apply for insurance knowing that you are likely to be made redundant, or even that redundancies are likely, then it is entirely possible that any claim will be turned down (it's called "anti selection"). If it came to it, the fact that you were ineligible for cover SHOULD mean you get your premiums back, but that's not guaranteed.


Just a note of caution! Sorry to be raining on anyone's parade![/QUOTE]

Hi
Thanks for that. Hubby's company has made one round of redundancies, no reason to think there will be another but prev experience makes me wary. If hubby was to be made redundant and we took out an unemployment policy that has an exclusion period of 60days, is this 60 days until he is given notice or until he finishes work?

Everything crossed that all will be fine

torbrex

I have been made redundant a number of times and my tip is for those that are single with no dependants.

Get a job, any job, you will not get enough in benifits to keep any kind of lifestyle. It does not matter if the job is part-time or if you think it is beneath you it will be many times better than the soul destroying, depressing process of 'signing on'.
Getting a job also means that you can salt away any redundancy payments you get.
Once you have settled down after the shock of redundancy and have an income you can start to look around for a more permenant position, you need to decide if you want to go back to the kind of work you were doing or move on to something either more of a challenge or like me something less stressfull.

Whatever you do just remember that the redundancy payment is not an everlasting pot.

DaveW007

DaveW007 wrote: »

I was made redundant on 2nd January 2009. The company I worked for had been having a few financial problems and very few staff had been paid in full their wages for December.

We were told we were being made redundant at 12.00 on 2nd January. Not given any notice or when we would be paid the remainder of our December wages. We were not advised if we would be paid for the 1.2 day we had all worked on 2nd January either.

Our company had been sold to a larger company based a 2 hour drive away making it not possible to commute.

Any advice with regard to outstanding wages or redundancy etc would be appreciated.

I have managed to get another job but don't start until the end of next month so there is light at the end of the tunnel.

I have found out today that the company I had worked for hasn't been sold at all but gone into insolvency.

Where do I stand with regard to my salary and holiday I haven't taken?

piggeh

Been made redundant today - anyone got any advice on the consultation period (I am not officially redundant until the consultation period is over, etc).

Actually my second redundancy in 9 months although I volunteered last time as it was a chance to move on in my career. Bit more difficult this time around, as the jobs are scarcer. Still, will try and view it as an opportunity I guess.

lizzie_dripping

pennypinchUK wrote: »

As a former HR bod, I've the dubious distinction of having made thousands of people redundant - having worked for 20 years in marginal and loss making companies time and time again I had to sit people down and break the news to them. Here are some random thoughts from my experience.

1. It's not personal. Companies, especially now, are having to make tough decisions about staffing every day. Yes, occasionally companies use redundancy as a cover to get rid of a trouble maker but it's rare. And redundancy selection processes (that companies have to use by law) make it less likely it will happen.

2. If you're made redundant, you WILL go through a roller-coaster of emotions - firstly anger, then defiance, followed by excessive optimism, closely followed by depression. Only after you've been through these emotions will you slowly climb the emotional ladder back up to a positive frame of mind.

3. The best way to stay optimistic is to stay busy. If you're not going to retire and need to look for a new job, treat the job hunt as a job in itself. That means, get up at your normal time, go to your "office" in your house where you've got a phone, files and somewhere quiet to sit. Break for an hour lunch and "leave" at your normal time. I even know some people who put a suit on during the day, so they feel professional.

4. 80% of jobs that are gained after redundancy are gained through personal contacts - yes, 80%! Not agencies, the web or adverts in the paper. So make a list of everyone you know, even vaguely and make a plan to contact them. This is the "unadvertised job market". Some consultants who are after a wedge of your redundancy money claim there's a "secret source" of jobs out there. Poppycock. Call the people you know, and tell them you've been made redundant and ASK FOR THEIR ADVICE if they know anyone you should contact who can help you. Do not ask them directly for a job, that's embarrassing for everyone. People are flattered if you ask for their advice and they're far more likely to want to help. This is a big subject in itself and there are careers manuals etc. out there specifically to help.

5. However, don't ignore agencies, the web or newspaper adverts. The mistake many people make is simply to use these, and not 4 above. Just make sure you use your time proportionally more talking to your contacts. Why? Well, apart from the fact that you've got an 80% chance of getting a new job through your contacts and only a 20% chance via other means, if you get a job through your contacts you're almost certain to be the only person going for the job. If you apply for a job through a newspaper advert you may well be one of hundreds.

6. Back to the redundancy meeting, ask for the 1st £30K to be tax free. If your Contract of Employment doesn't mention payments that would be due in the event of redundancy you should be able to get this tax break. Some employers (especially smaller ones without an HR department) don't know about this.

7. You may be able to get your employer to pay a part of your redundancy payment in to your pension scheme. Take pensions advice.

8. Speak to your Citizens Advice Bureau. Most have employment law specialists who you can talk to.

There's so much more, but one final thought for now. Of the thousands of people who I've let go, I am fortunate to have kept in contact with many of them for a while afterwards (some have become friends, rather strangely!). And I only know of 3 people who, in the end, have regretted being made redundant. The vast majority eventually saw redundancy as an opportunity to make a clean break, get a new career, relocate or get out of a rut.

Oh, and I've made myself redundant twice, so I know what it's like from both sides of the table!

This is an excellent post. :T

harrych

Hello,

I am being made redundant at the end of this working month (having worked my notice in full). My company have been great with me and offered a decent redundancy pay-off which I am very happy with. However they have now come back to me and asked me to return on a rolling contract for a duration expected to be around 6-8 months. If I agree to returning:

1) Will the I liable to pay tax on tax free part of my redundancy pay off (My company wont ask for this but I have to complete annual tax returns)?
2) Will this invalidate my redundancy insurance (as I may only end up returning for a month or so)
3) If after a set period of time I am offered a permanent role, will I be liable to pay back some of my statutory redundancy (not to the company - but the government/tax man)

I'd really appreciate some help on this as I am finding the whole situation very confusing.

Thankyou in advance,
Harry

dickydonkin

pennypinchUK wrote: »

As a former HR bod, I've the dubious distinction of having made thousands of people redundant - having worked for 20 years in marginal and loss making companies time and time again I had to sit people down and break the news to them. Here are some random thoughts from my experience.

1. It's not personal. Companies, especially now, are having to make tough decisions about staffing every day. Yes, occasionally companies use redundancy as a cover to get rid of a trouble maker but it's rare. And redundancy selection processes (that companies have to use by law) make it less likely it will happen.

2. If you're made redundant, you WILL go through a roller-coaster of emotions - firstly anger, then defiance, followed by excessive optimism, closely followed by depression. Only after you've been through these emotions will you slowly climb the emotional ladder back up to a positive frame of mind.

3. The best way to stay optimistic is to stay busy. If you're not going to retire and need to look for a new job, treat the job hunt as a job in itself. That means, get up at your normal time, go to your "office" in your house where you've got a phone, files and somewhere quiet to sit. Break for an hour lunch and "leave" at your normal time. I even know some people who put a suit on during the day, so they feel professional.

4. 80% of jobs that are gained after redundancy are gained through personal contacts - yes, 80%! Not agencies, the web or adverts in the paper. So make a list of everyone you know, even vaguely and make a plan to contact them. This is the "unadvertised job market". Some consultants who are after a wedge of your redundancy money claim there's a "secret source" of jobs out there. Poppycock. Call the people you know, and tell them you've been made redundant and ASK FOR THEIR ADVICE if they know anyone you should contact who can help you. Do not ask them directly for a job, that's embarrassing for everyone. People are flattered if you ask for their advice and they're far more likely to want to help. This is a big subject in itself and there are careers manuals etc. out there specifically to help.

5. However, don't ignore agencies, the web or newspaper adverts. The mistake many people make is simply to use these, and not 4 above. Just make sure you use your time proportionally more talking to your contacts. Why? Well, apart from the fact that you've got an 80% chance of getting a new job through your contacts and only a 20% chance via other means, if you get a job through your contacts you're almost certain to be the only person going for the job. If you apply for a job through a newspaper advert you may well be one of hundreds.

6. Back to the redundancy meeting, ask for the 1st £30K to be tax free. If your Contract of Employment doesn't mention payments that would be due in the event of redundancy you should be able to get this tax break. Some employers (especially smaller ones without an HR department) don't know about this.

7. You may be able to get your employer to pay a part of your redundancy payment in to your pension scheme. Take pensions advice.

8. Speak to your Citizens Advice Bureau. Most have employment law specialists who you can talk to.

There's so much more, but one final thought for now. Of the thousands of people who I've let go, I am fortunate to have kept in contact with many of them for a while afterwards (some have become friends, rather strangely!). And I only know of 3 people who, in the end, have regretted being made redundant. The vast majority eventually saw redundancy as an opportunity to make a clean break, get a new career, relocate or get out of a rut.

Oh, and I've made myself redundant twice, so I know what it's like from both sides of the table!

pennypinchUK Please forgive me for refreshing your excellent post as I believe everyone who is or about to be made redundant should read it.

What you have stated is absolutely true in all aspects of your contribution and it is comforting to know that all "HR Bods" are not sycophantic idiots who have little knowledge and whose only interest is to the company and give scant regard or sympathy to affected personnel in such a difficult and stressful time. Sadly, I have had dealings with such people, although like most professions, there will always be the good, the bad and the ugly!

80% of jobs that are gained after redundancy are gained through personal contacts - yes, 80%! Not agencies, the web or adverts in the paper.

The above quote from you is oh so true and very important as I am sure many people are not aware of that fact. I knew that the percentage would be significant, but I had no idea that it was as high as 80%.

If you're made redundant, you WILL go through a roller-coaster of emotions - firstly anger, then defiance, followed by excessive optimism, closely followed by depression. Only after you've been through these emotions will you slowly climb the emotional ladder back up to a positive frame of mind.

Again, very true. When I got a little bit down, I would walk for miles (and I mean miles!) to clear my head. This worked and had the additional effect of losing a little weight and feeling fitter and more optimistic.

It is very very important however, not to mope around and feel sorry for yourself.

Remember, a redundancy was not about your ability or lack of it, and it is a sobering thought that there are nearly 3 million others (although I believe there are more) in the same position.

pennypinchUK Your informative and extremely well structured post will bring some comfort and hope to all who read it I am sure.

jdturk

harrych wrote: »

Hello,

I am being made redundant at the end of this working month (having worked my notice in full). My company have been great with me and offered a decent redundancy pay-off which I am very happy with. However they have now come back to me and asked me to return on a rolling contract for a duration expected to be around 6-8 months. If I agree to returning:

1) Will the I liable to pay tax on tax free part of my redundancy pay off (My company wont ask for this but I have to complete annual tax returns)?
2) Will this invalidate my redundancy insurance (as I may only end up returning for a month or so)
3) If after a set period of time I am offered a permanent role, will I be liable to pay back some of my statutory redundancy (not to the company - but the government/tax man)

I'd really appreciate some help on this as I am finding the whole situation very confusing.

Thankyou in advance,
Harry

I would suggest you repost this as a new thread so it gets more views