Being told you're no longer needed is never nice - it's not just your finances but also your confidence that's likely to take a hit. Unfortunately, the current economic crisis means that even if you've received rave reviews in appraisals, you could still be in line for redundancy.
"Your job has effectively disappeared from within your organisation."
If your employer is among those suffering a decline in business, they may have no choice but to cut staff. Being unexpectedly unemployed is far from ideal, but try not to panic if your payslip comes with a P45 – losing your job isn't the end of the world and it could even provide an opportunity to move on to something bigger and better.
If you are made redundant it means your job has effectively disappeared from within your organisation – an employer cannot make you redundant and then hire someone else to do your job. However, if you work for a large company and many people work in the same role as you, your employer may keep some staff and dismiss others.
Your employer should consult with you first to explain the reasons for the possible redundancy and discuss alternatives, such as moving you to another position.
If your employer is making more than 20 people redundant at the same time, this is called a collective redundancy and they must consult with employee or union representatives. Employers should have a fair, objective and transparent selection process for choosing which individuals are being let go. If you believe the selection process is unfair, you may have been unfairly dismissed and you can complain to an employment tribunal (or industrial tribunal in Northern Ireland).
If you've been in the job for between one month and two years, they must give you at least one weeks' notice. For those employed for between two and 12 years, you must get at least one weeks' notice for each year of service. You should also be given time off to look for new employment.
Many people think redundancy comes with a big fat pay packet, but statutory redundancy pay is actually rather modest. Here are the facts:
These are only the minimum obligations your employer has, so it's important to check your employment contract in case you're entitled to a higher amount.
If you don't think your employer is playing by the rules, start by raising the issue with them, perhaps via human resources or following internal grievance procedures. Trade unions may also negotiate on your behalf if you're a member. Everyone has the right to belong to a union; if you're not sure which union is most appropriate for you, consult the Trade Union Congresses Union Finder. You can also consult the Advisory, Conciliation and Arbitration Service or the Citizens Advice Bureau (CAB) for detailed advice relating to your personal circumstances.
By Joanne Christie