Coping with redundancy

Although it may not feel like it right now, there are ways to get back on your feet financially and keep your chin up when the going gets tough.

Jamie talks about life after being made redundant

Produced by Lifetracks

Jamie was made redundant from a construction firm he was working for. Having been out of work for 8 months, he's starting to worry about what he should do next.

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"Companies are forced to cut staff for financial reasons, so redundancy is rarely personal."

What is redundancy?

Redundancy is when your services are no longer required by your employers. Right now, the recession has put many employers under pressure to compete for business. To make sure that their business survives, organisations often have to make job cuts.

Is it my fault?

Companies are forced to cut staff for financial reasons, so it's rarely personal – it's your job that's been made redundant, not you. Remember you have not been sacked for doing something wrong. The economic situation means many others with valuable skills are going through the same nightmare, so although being made redundant might feel like rejection, it's important not to see it like that.

Know your rights

If you've been employed by a company for two years or more you're entitled to a lump sum based on your weekly earnings. Check your contract: the minimum you can expect is statutory redundancy pay, but it's always worth talking to your employer to see if they offer an enhanced package. If you've been working in casual, part-time or temporary employment, however, you probably won't receive any form of redundancy pay. But this is set to change as legislation is expected to be introduced giving workers the same rights as permanent employees after 12 months. An advisor at the Citizens Advice Bureau (CAB) will be able to give you the latest information on this.

How will I manage financially?

Don't be embarrassed to ask for help. Start by registering with Jobcentre Plus and claim what financial support you may be entitled to. Mark Couzens from the CAB says: "If you don't register you could miss out on your credited National Insurance contributions, and that would affect your entitlement to state pensions and other benefits." This may differ in Northern Ireland, Wales and Scotland, so check in with your local authority for specific information for your area.

How do I find another job?

There's no doubt it's tougher to find a job right now, but tougher doesn't mean impossible. Your advisor at Jobcentre Plus will be able to help you as you look at possible job options. Also, check out our Job Hunting section for more ideas. The important thing to remember is that redundancy is nothing to be ashamed of, so you mustn't let it knock your confidence or make you doubt your own abilities when it comes to finding a new job.

What do the experts say?

Carole Ann Rice, life coach and author of Find Your Dream Job, believes that in order to cope with redundancy you need to start thinking like actors do. Many actors are forced to 'rest' between periods of work, but they can't start behaving like they're on the scrap heap – instead, they have to stay in shape for their next starring role.

"They have to stay positive and focused, and so must you," says Carole Ann. "If you find yourself unemployed for a while, take advantage of training schemes and set your compass in a different direction. A lot of award-winning TV camera folk moonlight as domestic electricians between contracts. Why not train in something completely new? It could always be a nice little earner alongside your dream day job, or give you a transferable skill to take into a new career."

By Lisa Clark

Updated:18/06/2010

Did you know?

A survey of over 1000 recently redundant jobseekers by www.careerplan4.me found that half believed their overall treatment by their last employer was unfair or poor.

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Create a structure to your day – set your alarm clock for the same time each morning and get up. Go for a walk, take some exercise, visit old friends/contacts for lunch and don't be afraid to tell people that you're looking for a job.
Work on what really matters to you. Ask yourself the following questions: Did you enjoy doing the job you were made redundant from? Would you like to find the same job in another company, or do you feel that you'd like to try something else? Answering these questions will help you decide what you really want to do.
Don't be too proud to take interim jobs – working in bars, the local deli, or warehouse work – while you search for something you really want to do. Often, just being in work makes it easier to find other employment.
If you've lost your confidence, write down all your achievements, transferable skills and great personality traits in a journal. When you start to feel wobbly, use it to boost your self-esteem.
Do voluntary work – not only will it make you feel good and help you stay focused, you could pick up some new skills, too. Check out do-it.org, vinspired.com and volunteering.org.uk for opportunities.
Watch the Lifetracks video for tips on successful job hunting.

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