Unemployment insurance before 2y of employment

Hi,

I was wondering what was the point in taking an unemployment insurance if I'm not employed for at least 2y in the same company.
At the end, I can be fired for whatever reason before 2y, so, what's the damn point to take it before then?
I may anticipate at 22 months for example due to the deferred period, but the cover would be valid only after 2y in my knowledge...

Plus, the unemployment insurance covers redundancy (not any other reason), so if the employer doesn't specify the reason (as it is allowed to do), the insurance won't cover before 2y of employment.

On a side note, if the company goes bankrupt or closes the branch, that also doesn't count as redundancy........................................... Do I see it right?

What do you think?

Comments

  • user1977
    user1977 Posts: 13,245
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    Luke451 said:

    On a side note, if the company goes bankrupt or closes the branch, that also doesn't count as redundancy........................................... Do I see it right?
    What makes you think your employment ending in those situations wouldn't count as redundancy? Are there insurers which distinguish between them?
  • dunstonh
    dunstonh Posts: 115,588
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    I was wondering what was the point in taking an unemployment insurance if I'm not employed for at least 2y in the same company.
    What does 2 years have to do with it?

    At the end, I can be fired for whatever reason before 2y, so, what's the damn point to take it before then?
    a) you cannot be fired for whatever reason
    b) fired means you have lost your job to misconduct.  You could be there 20 years, get fired and the insurance wouldn't pay out.

    Plus, the unemployment insurance covers redundancy (not any other reason), so if the employer doesn't specify the reason (as it is allowed to do), the insurance won't cover before 2y of employment.
    Your termination letter will state the reason why.   It may not have the detail behind it but it will clearly read whether it is a dismissal or redundancy.

    On a side note, if the company goes bankrupt or closes the branch, that also doesn't count as redundancy........................................... Do I see it right?
    No you don't.



     



    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Luke451
    Luke451 Posts: 156
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    user1977 said:
    Luke451 said:

    On a side note, if the company goes bankrupt or closes the branch, that also doesn't count as redundancy........................................... Do I see it right?
    What makes you think your employment ending in those situations wouldn't count as redundancy? Are there insurers which distinguish between them?

    I'm not a lawyer, surely I should have asked to one of them instead of coming here, but I tried :) .
    I don't know, I just see that the wording is different...

    Moreover, the biggest risk is being fired before 2y.
  • Luke451
    Luke451 Posts: 156
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    dunstonh said:
    I was wondering what was the point in taking an unemployment insurance if I'm not employed for at least 2y in the same company.
    What does 2 years have to do with it?

    At the end, I can be fired for whatever reason before 2y, so, what's the damn point to take it before then?
    a) you cannot be fired for whatever reason
    b) fired means you have lost your job to misconduct.  You could be there 20 years, get fired and the insurance wouldn't pay out.

    I wasn't worried of being fired for misconduct, but being sacked (before 2y) or whatever is the correct term for it.
    Plus, the unemployment insurance covers redundancy (not any other reason), so if the employer doesn't specify the reason (as it is allowed to do), the insurance won't cover before 2y of employment.
    Your termination letter will state the reason why.   It may not have the detail behind it but it will clearly read whether it is a dismissal or redundancy.

    It will not cover dismissal before 2y then, did I understand it well?
    On a side note, if the company goes bankrupt or closes the branch, that also doesn't count as redundancy........................................... Do I see it right?
    No you don't.


    Thanks for the clarification.




  • dunstonh
    dunstonh Posts: 115,588
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    I wasn't worried of being fired for misconduct, but being sacked (before 2y) or whatever is the correct term for it.
    Sacked and fired indicates dismissal due to misconduct.    
    Redundancy is what they pay out on.

    It will not cover dismissal before 2y then, did I understand it well?
    I have never seen one have a 2 year qualifying period.    The vast majority I have seen over the decades have required a 6 months qualification period.


    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • DullGreyGuy
    DullGreyGuy Posts: 8,852
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    edited 11 December 2023 at 10:10AM
    dunstonh said:
    I have never seen one have a 2 year qualifying period.    The vast majority I have seen over the decades have required a 6 months qualification period.
    The issue is that as an employee with less than 2 years service you can be let go without any reason given as long as its not for an "ism". Its not redundancy as that has a formal legal process and it may or may not be for misconduct... it could be for competency, effectively redundancy but they've enough newbies they are willing to let go to avoid the legal process or anything else. 

    If the insurance explicitly requires redundancy then there is almost an unwritten term of little cover in the first 2 years of employment. 

    The PPI the ex used to manage claims for was more generous, they would cover loss of employment as long as it wasn't for gross misconduct, resignation or voluntary redundancy and so would cover someone simply being let go because they've less than two years service
  • Luke451
    Luke451 Posts: 156
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    dunstonh said:
    I have never seen one have a 2 year qualifying period.    The vast majority I have seen over the decades have required a 6 months qualification period.
    The issue is that as an employee with less than 2 years service you can be let go without any reason given as long as its not for an "ism". Its not redundancy as that has a formal legal process and it may or may not be for misconduct... it could be for competency, effectively redundancy but they've enough newbies they are willing to let go to avoid the legal process or anything else. 

    If the insurance explicitly requires redundancy then there is almost an unwritten term of little cover in the first 2 years of employment. 

    The PPI the ex used to manage claims for was more generous, they would cover loss of employment as long as it wasn't for gross misconduct, resignation or voluntary redundancy and so would cover someone simply being let go because they've less than two years service

    Exactly, before 2y, no questions asked.
    I'll check the PPI, it may have what you mentioned, but it's only for the mortgage though.
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