Redundancy payments are a form of insurance and not everyone is entitled to them. If your employer has taken out this insurance then you should be entitled to redundancy if you lose your job due to no fault of your own – for example, if your employer closes down or moves operations away from the UK. If your employer hasn’t taken out this insurance then you may still be entitled to other forms of compensation such as unfair dismissal or breach of contract claims if you were dismissed unfairly or without notice by your employer. Redundancy pay is a benefit that many employers offer as part of their employee packages, and it’s one you should take advantage of if you find yourself in this situation. If you’re not sure what redundancy pay is, or how to use it, here are some tips to help you get the most out of your compensation package.
- Make Sure Your Contract Is Clear on Redundancy Pay
In some cases, employers may offer redundancy pay based on an employee’s length of service — but only if they’ve been with the company for more than two years or so. You need to make sure that your contract is clear on what kind of redundancy pay you’ll receive if you’re laid off or fired.
- Don’t Wait Until the Last Minute to Claim Your Redundancy Pay
If your employer has made redundancies, then they’ll be contacting employees individually by phone or email so they can discuss their situation with them directly and discuss what options there are for leaving early with redundancy pay. That said, don’t wait until the last minute to claim your redundancy pay as this can cause unnecessary stress and panic!
- Don’t panic
This may be a difficult time for you and your family but remember that there are lots of things that you can do, such as looking for another job and keeping up with bills. You may even be able to claim benefits during this time if you meet certain criteria.
- Speak to your employer
If you have any questions about your redundancy package or if there is anything else you need to know, then speak directly to your employer rather than going through HR. This way they can answer any queries quickly and accurately, so that they do not delay the redundancy process further down the line.
- Don’t sign anything until you’re ready
Be careful when signing documentation relating to your redundancy payment as it could set out what will happen in the future (such as when payments will stop). Signing these documents before speaking with a financial advisor could mean that some money is left on the table that could go towards paying off debts.
- Make sure your job is ‘redundant’
You’re entitled to redundancy pay if your employer doesn’t need your job any more, or they’ve stopped operating at the place where you work. This could be because the company has closed down completely (or moved away), or because they’re moving to another site and won’t need all their staff anymore.
- Check how much notice you’re due
Your contract should say how much notice you’ll get if there’s no work for you anymore — usually between one week and two months depending on how long you’ve been working there. If it doesn’t say anything about notice, check what’s in your employee handbook or ask someone from HR or payroll if necessary — this should be fairly straightforward information for them to provide.