Dealing with redundancy: advice for employers and employees
Being made redundant is one of the most unpleasant things you can experience at work. I should know – it’s happened to me four times.
When you’ve worked hard, enjoy your job and enjoy working with your colleagues, redundancy is a bitter pill to swallow. And being told it’s not your fault, that you’re simply a victim of economic circumstances, offers no comfort.
You may be lucky enough to get redundancy pay, so you can cover your bills until you find a new job. But if not, things can get very stressful, especially if you have a mortgage/rent to pay and other mouths to feed.
Without wishing to sound blasé or insensitive, even though I received no redundancy pay, on two occasions I didn’t feel remotely unhappy about being made redundant. I was able to escape jobs I hated; working for people I disliked who couldn’t care less about me. I was underpaid, underappreciated and overworked.
In reality, every time I’ve been made redundant, I’ve gone on to better things, including starting my own business. It can be hard, but redundancy can lead to something better. So, whether you’re an employer or employee, what else do you need to know about redundancy?
Redundancy advice for employers
Making redundancies can also be one of the worst things employers have to go through. Seeing good people lose their jobs through no fault of their own isn’t nice. The process can be very stressful and time-consuming, too, when you could also be faced with serious cash-flow issues.
Independent workplace experts Acas has produced guidance for employers on how to manage staff redundancies. It advises creating a redundancy plan, so you can better manage each stage of the process, as well as exploring all options so you can avoid compulsory redundancies.
Communication, consultation and support
Involving staff and their representatives in consultations is essential and you should fully support your employees throughout. Do what you can to help them find other jobs if they’re made redundant. You must also consider employees who remain, because they can be unsettled.
Although you may need support from your accountant, government website Gov.uk enables you to calculate your employee’s statutory redundancy pay. Employees must not be selected unfairly and you must give them “reasonable” time off to look for a new job. If necessary, seek tailored advice from a legal or HR consultant. Jobcentre Plus can give you and your employees free support and advice.
Poor communication, lack of empathy and unfair treatment can lead to resentment. Employees should feel free to come to speak to you about their concerns. Those with more than two years’ service qualify for statutory redundancy pay. If your business would become insolvent by making statutory redundancy payments, the Insolvency Service’s Redundancy Payments Service may help.
Redundancy advice for employees
Gov.uk also offers advice for employees on redundancy. Acas operates a redundancy payments helpline (0300 123 1100), while its website details employee redundancy rights. The Citizens Advice website allows you to check that your redundancy is fair and enables you to find out about your redundancy pay rights. Find out about those as soon as you’re told you’re being made redundant.
According to Gov.uk: “You must be selected for redundancy in a fair way, for example, because of your level of experience or capability. You cannot be selected because of age, gender or if you’re disabled or pregnant [otherwise it] could be classed as an unfair dismissal.” Often last in are first out. You can write to your employer to appeal if you believe you’ve been unfairly selected. If so, you may be able to make a claim to an employment tribunal.
You’re entitled to notice or payment in lieu of notice if included in your employment contract. You have consultation rights, too. If, during consultation, you are told you may be made redundant, act straight away – don’t waste any time. Update your CV and LinkedIn page immediately.
Redundancy – what next?
If you plan to find another job, begin your search while serving your notice period. You can get time off for job interviews. Also let it be known through your networks that you’re looking for a new job.
You may be able to find one by searching on Gov.uk. Jobcentre Plus offers advice on how to look for a job online (with a handy list of recruitment websites you can add to your favourites). The Jobcentre Plus Rapid Response Service may be able to help you to write a new CV and find a job, while also providing advice on benefits and training.
Contacting recruitment consultants could pay off, as could searching on trade, local and national press websites for situations vacant. You could also email speculative applications to potential employers in your field or area. Don’t discount anything.
With huge number of redundancies having been made in recent months (695,000 people have reportedly left company payrolls since March), competition for vacancies will be fierce. You could choose to enhance your skills or qualifications to stand a better chance. You may be eligible to claim benefits while looking for your next job. Those losing their jobs in certain areas or sectors may decide to retrain (visit the National Careers Service pages of Gov.uk for information if you’re in England – there are similar services in Scotland, Wales and Northern Ireland).
Start your own business?
Another option could be to start your own business, whether full time or as a “side hustle” (maybe to earn a few quid until you find a job). Reportedly, more than 680,000 new businesses were registered in 2019, yet with many redundancies expected and competition for jobs intense, previous UK business start-up records could be broken.
Whatever you decide to do, don’t allow your confidence to be damaged by redundancy. Your role has been made redundant – you haven’t. And if you’re angry – let it go. Stay positive. Use your time wisely. Focus on your strengths, experience and achievements. Network like crazy. Explore all of your available options. Have faith – and most of all – believe in yourself. You too can move on to bigger and better things.
Mark Williams is the founder and content director of Dead Good Content. He’s a small-business and start-up content specialist with more than 25 years’ experience, having written for The Guardian, many leading brands and award-winning magazines and websites.