By: Sally Nightingale

Getting made redundant is, for most people, no fun. It usually comes as a shock, even if employees already suspected something wasn’t right at their place of work. Of course, for a few people, getting made redundant is the best thing in the world and presents them with an opportunity to reinvent themselves or go off and discover the world. But assuming you are not one of those people and it has all come as a bit of a shock, here are a few tips about redundancy that just might come in useful:

The first question on every ones mind is “am I going to get any money?” The answer to this is yes if….

• You are being made redundant and being dismissed from the company and not resigning. If you are invited to leave the company by taking voluntary redundancy – this usually qualifies as a dismissal by reason of redundancy

• You have at least 2 years continuous service

• You are working under a contract of employment, which can be either written, verbal or a combination of both

So the next question is “how much am I going to get?”

This can vary enormously depending on your employer. It can range from the statutory minimum to whatever the employer has put in the contract. Whatever the payment amount, the first thing to know is that only the first £30,000 is exempt from tax. If you are lucky enough to receive any more than this then the tax man will want a share and your redundancy payment will be taxed at your highest rate.

If you are being paid the statutory minimum there are a number of factors taken into consideration. The final amount will be governed by…..

• How long you have been continuously employed by your employer but with a cap of 20 years for calculating redundancy pay

• Your age and how it relates to your continuous service

• Your weekly pay but with a cap of £380 per week being the maximum allowable when calculating redundancy pay

If you are wondering what your age has got to do with all this then you should know that the final payment calculation is based upon the following….

• You will receive half a weeks pay for every full year you have worked if you are less than 22 years of age

• You will receive one weeks pay for every full year you have worked if you are more than 22 but less than 41

• You will receive one and a half weeks pay for every full year you have worked if you are over 41 years of age

But don’t forget the maximum amount that can be used for your weekly pay calculations is £380, no matter if you earn more than this and the maximum length of continuous employment is capped at 20 years no matter how long you have worked for your employer.

There are a number of websites including ‘DirectGov’ and ‘BIS’ that provide ready reckoners so that you can work out how much redundancy pay you should receive. Simply follow any of the links below and then follow the simple instructions and you will end up with a final figure.

“When will I get my money?”

Your employer should make your redundancy payment on the last day you work or as soon as possible after that. If they want to make the payment later then they must discuss this with you and get your agreement. If you feel they are being unreasonable then you may be able to take them to an Employment Tribunal.

What next?

If you haven’t been able to get another job straight away but are looking for work, you should be able to claim jobseeker’s allowance. If you have paid enough class 1 national insurance contributions, you are eligible for contributions-based jobseeker’s allowance worth £47.95 a week between the ages of 18 and 24, and £60.50 from age 25 onwards. The self-employed typically do not pay class 1 contributions so do not qualify.

Unlike most state benefits contributions-based jobseeker’s allowance isn’t means-tested, so any statutory redundancy payout won’t affect your entitlement. But you won’t receive any benefits until the period covered by any pay you received in lieu of notice has expired.

The contributions-based payout only lasts six months, after which you can claim income-based jobseeker’s allowance, which is targeted at people who haven’t made enough NI contributions, and is means-tested – you will receive less if you have savings over £6,000, and nothing if you have savings over £16,000.

These benefits are complicated, so visit your local job centre or go online at Job Centre Plus.

And remember, as clichéd as it sounds there is life after redundancy……

The first thing is to try not to panic. Think about what you might say to people if asked “what do you do?” and you are not comfortable with the word “redundant”. If money is your immediate concern then draw up a list of what you are spending and then look for ways to cut costs. There are plenty of tips on the internet to help you do this. Try and make sure that you have a minimum of 3 months living costs put away.

Try and stay positive and keep a routine. Get up at a regular time, look after yourself and see if you can find places where you can meet and talk with other people, so that you have regular contact with the outside world. Give yourself a bit of time to come to terms with what has happened and then be proactive in deciding what you want to do next. Whether you decide to follow the same career or try something completely new start looking for opportunities.

If you decide to become self employed make sure you find a good accountant. They will be able to give you advice about setting up your company and ensure that you pay the appropriate taxes at the lowest rates.

About the Author

For more information about redundancy and online accountancy issues visit Net Accounting.

(ArticlesBase SC #1790551)

Article Source: http://www.articlesbase.com/ – A Basic Guide To Redundancy

The options might include:-
a. Finding another job. Within this there are further options. Do you find a job:-
i. similar and in the same area to the one you just left?
Could be the safe bet provided there are vacancies
ii. in the same industry but at a more junior level?
This might be for you if you are not (or are no longer!) ambitious or your income
requirements have dropped
iii. similar to the one you’ve left but in a different area?
b. Change your career
Is there something else you have always wanted to try?
c. Take a career break?
This might be an option if you have received a healthy redundancy package
d. Start your own business
You may have a long held desire to start a cleaning business or open a cake shop.
Now could be the ideal time
It is likely to be obvious to some of our readers straight away which of these options are not feasible – you may have children at crucial points in their education which would put relocation at the bottom of your list – but some are more difficult. How do you decide and who do you listen to?

Do you listen to the well meaning, parent, partner, friend or sibling who love you and know you best but might not share your passion or entrepreneurial spirit? Or so called experts who might understand the business side but can’t understand your personal circumstances?

The following are some pointers when you are going through this decision making process:-
1. Get some expert advice, not so that you might follow it blindly, but to be educated and to allow you to make the decision that is right for you from a position of knowledge
2. Do your research. If you are looking to set up your own business, how much time can you afford to invest before you need to earn any income. Is there a genuine market for your product?
3. If those you know and love seem concerned about your planned course of action, remember they are motivated by wanting the best for you. Accept their concerns as an inevitable part of the process, listen carefully to what they have to say, acknowledge their concerns then address each point, tell them what you feel are the pros and cons and ask for their support
4. Fast forward yourself to two or three years time. If you go for the easy option today will you regret the fact that you by passed the opportunity you had to explore something a bit more radical?

Only when you have done your research, taken account of the long term view and weighed up all the pros and cons after hearing the views of experts and your loved ones will you be in a position to make a reasoned decision – one that is right for you.

And in the words of Cicero, Roman philosopher – Nobody can give you wiser advice than yourself.
Allison
Website: www.macintoshwright.com Business Coaching specialists
Twitter: http://twitter.com/Allison_M_G
Blog: http://www.macintoshwright.com/beyond-redundancy-blog/
Facebook: http://tiny.cc/lXKs8

1. www.realbusiness.co.uk This is probably one of the best ones. Predictions for small businesses from Real Business, a support organisation for entrepreneurs. Its predictions include the fact that small businesses will lead the way out of the recession and support will be increased from the government. http://tiny.cc/ks9yc

2. www.thisismoney.co.uk – finance website of the year last year – predicts a slow recovery with the financial sector continuing to take the brunt of the pain. http://tiny.cc/txYrj

3. Also from This is Money, an interview with HSBC chief Stephen Green who says the worst is over but a full recovery will take until 2012. http://tiny.cc/qBhWg

4. Predictions not only for house prices but changes in the structure of the market, from Anne Ashworth of The Times. From people making the most of the homes they are in, to couples looking for innovative ways of overcoming their housing problems when relationships breakdown. http://tiny.cc/H1ulB

5. www.Utalkmarketing.com a community website for marketers, predicts a continuing love of shopping despite the recession and more demand for online and international services. http://tiny.cc/BJ1hC
Do you have an idea for a product you can supply to a population of shopaholics?

6. www.personneltoday.com thinks that pay freezes will continue this year. http://tiny.cc/XKfWM

7. Mintel, the consumer research specialists, predict that:-
a. there will be some social and behavioural shifts as a result of the recession. This will mean growing skillsets in cooking, meal planning and food budgeting.
b. the home will be at the centre of everything for consumers, more than ever before. Businesses which can deliver what consumers need as a result will benefit.
c. escapism will be a key trend of 2010 both in and out of the home as consumers look for ways of forgetting all the cutting back and saving with increasing numbers investing in larger and more sophisticated home equipment
d. consumers will be more focussed on value, not only buying discounted brands but paying more attention to ensuring the goods they are buying are good value. Businesses that can convince consumers their goods are worth the asking price will do well.
e. With a growing awareness of ethical responsibility, ethics will pay a big part in building up brands and influencing purchase – nearly half of UK adults view environmental and ethical issues as important

8. And finally, from the Times, an article on 2010 being the year when misery and opportunity will converge. http://tiny.cc/dLN90

Which camp will you choose – misery or opportunity?

In such times we are often encouraged to look for inspiration from others who have risen above seemingly impossible hurdles, met challenges head on and come out the other end much better people.

People like Jamie Andrew http://www.jamieandrew.com who continues climbing mountains despite losing both hands and feet in a climbing accident in 1999. Or  Victor Frankl, Auschwitz survivor, who lived a full live following his liberation, establishing himself as a world renowned psychiatrist and writing many books including ‘Man’s Search for Meaning’.

And whilst I agree that these achievements are to be applauded and we can most certainly  all learn from them, I wonder whether in looking at such a high level we are missing inspiration which might lie closer to home. From amongst those we know and love. Whose achievements, whilst perhaps not in the same superhuman league, nevertheless because they involve someone we care about can have more of an impact in helping us see things in a different, more positive light?

What prompted this thinking was a phone call from my sister Susan about her husband Graham’s latest mishap. Graham had a nasty fall on the ice in the week before Christmas and dislocated his knee – his leg was strapped up and he was given crutches as a temporary measure over Christmas but told he would be in for an operation as soon as a slot could be found. And true to the hospital’s word, the operation was carried out before the year end.

Graham knows that his recovery is going to be long and painful but what he wasn’t expecting was to be back in hospital within a few hours of being discharged. It seems there was a problem with the wound which resulted in excessive bleeding, bad enough to prompt a ‘999’ call and, as Susan said, ‘the room ended up looking as though it  was in the middle of the Battle of the Somme’

Now all this would be bad enough but Graham has had more than his fair share of problems in recent times.  Firstly, there was his heart problem which necessitated a number of stays in hospital, an operation and continuing daily medication. Then he was diagnosed with testicular cancer – another operation and regular hospital visits for the next five years.

Having gone through all this, who could blame him if he became overwhelmed by the bad luck which has dogged him over the last few years? If he took it out on his family or became even the teeniest bit depressed?

I certainly wouldn’t but that’s not Graham’s way. His way is to find a joke and an upside to everything. And there is always an upside to be found. This time it is that, once they have patched his leg up again and discharged him, once he has sorted out with his boss some work to do from home, it will still leave plenty of time to get some extra guitar practice in. For playing the guitar is a recently discovered passion and the chance to give a boost to this newly acquired skill is just too good to miss.

And I find that …………….truly inspirational. To be able to rise above this latest setback and just see the opportunity is a lesson for us all.

Graham’s story is an inspiration to me – who do you know who has done something which can inspire you to rise above your own challenges?

www.macintoshwright.com – Business Coaching specialists

1.    Career. Now is a good time to think about what you might want to do next.
Another job similar to the one you’ve left?
Further education?
Look for something part time?
Retrain to change career direction?
Start your own business?
This could be the key to your future so you might want to put some focus in to this area starting with working out your life goals and understanding your strengths and weaknesses. Some ideas to start you off:-
1. www.myersbriggs.org
2.www.businesslink.gov.uk
3.www.englandsrdas.com
4.“How to get a job you’ll love” by John Lees from www.amazon.co.uk
5. www.kolbe.com

2.    Networking. Many jobs aren’t advertised and employers do like to recruit people via recommendation. Keeping in touch with contacts can also help with input on some of the other items above eg identifying skills, giving support etc. When talking to your contacts, ask them for contact details of 5 people who they would be happy for you to approach about job opportunities. Keep your conversations fairly low key – just tell them you are looking for work, what your top skills are and ask them to bear you in mind if they hear of anything. Also, make use of online networking – try www.linkedin.com or www.ecademy.com

3.     Skills. Make a list of all the skills you have. This will help keep your confidence up and also, give you food for thought on what you might want to do next. Don’t restrict your list to things you have learnt at work in recent times, think about other areas of your life. And if you can’t think of at least one hundred, ask 10 people you know well what 10 things they value you for. You may be surprised.

4.    Support. Don’t feel you have to cope on your own. Make a point of sharing your feelings each day with someone close to you. Tell them you are not necessarily looking for answers, just someone to listen. And if there are times when those around you are affected by the situation, seek out someone not directly involved who can listen objectively.

5.    Experiences. Experiment with new experiences which will help keep your confidence up and open your mind to new ideas. You might find it easy to come up with a few things you’ve always wanted to try but those that don’t cost too much money will take a bit longer!

Try www.do-it.org.uk for ideas on volunteering or www.toastmasters.org- a great place to not only hone your presentation and public speaking skills but also to network and be educated by what other people talk about.

When you have been made redundant, it is very easy to rush headlong in to looking for a job similar to the one you have just left. However, if you take time to review your options, look after your wellbeing by ensuring you get ongoing support, you will give yourself the best chance of making the most of this experience.

Are you doing enough to make this a positive experience?

The following lists a number of ways you can stay positive and look at redundancy as a real opportunity:-

1.    Emotions. There are a number of emotional reactions to redundancy that are normal and predictable. They are akin to experiencing the loss of a loved one and include shock, guilt, anger and loneliness. Not pretty but inevitable so accept that they come with the ride and are a necessary part of getting through this period.

2.    Positives. Make a list of all the positives which come  out of being made redundant. Some are more obvious than others so start your list and keep adding to it each day. And if you run out of ideas, you can either ask those close to you what benefits THEY have had from you being made redundant (eg kids enjoy spending more time with you) and/or  ask others who have been made redundant what positives they found.

3.  Budget. Spend some time reviewing your budget and if you don’t already work to one, now is a good time to do this! Here is a link to a good starting point  – http://tinyurl.com/y8csho8. Also useful for moneysaving tips.

4.   Increase income. As well as looking at ways of reducing spending, a budget can also be about ways of increasing income. A brainstorming session with all household or family members could throw up some useful ideas. Obvious examples might be sell unwanted items on ebay or applying for a tax rebate but you could also think about selling the car, renting a room, renting out your house and moving to a smaller rented place. Getting the whole family involved in the process from the start will mean they ‘buy in’ to ideas which might mean a hardship for them.

5.    Legal advice. Ensure you get good legal advice, if for no other reason than it will make you feel more positive if you know you are doing everything you can to ensure you receive what you are entitled to.

When you have been made redundant, it is very easy to let depression take over.  However, if you take time to review your options and understand that some negative emotions are a necessary part of the process, you will give yourself the best chance of turning this in to a positive experience.

How can you make the most of this opportunity?