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Redundancy Support Guide – What you need to know if you’ve lost your job in 2020


Losing your job can be incredibly stressful and a massive financial hit to you and your family. The coronavirus crisis has triggered unprecedented levels of layoffs (well over 700,000 so far) and right now, we are seeing more people being made redundant than we ever have.

This guide sets out to answer all the questions you might have if you’ve recently lost your job. From knowing what you’re entitled to and your legal rights, to sorting your finances and searching for a new job. As part of our ‘Get Britain Hiring’ campaign, we want to be by your side, arm you with data and support you every step of the way.

I’ve just lost my job. What do I do? 

Whether you’ve just had the news, or you’ve but out of work for a longer period of time, it’s important to keep in mind the old adage – “It’s your job that’s been made redundant, not you.” If you have been selected for redundancy, it’s worth noting that at all times your employer must treat you fairly. Given the pandemic, we’re sure most employers will do the right thing, but there’s no harm in double checking your rights. The government’s website has a great section on unfair dismissal and arming yourself with all the information here. 

Redundancy pay

Depending on your contract, you may be entitled to more than statutory redundancy pay, so make sure you check your contract before you agree to any redundancy terms. As long as you qualify for redundancy rights, you will get some redundancy pay. There are three main factors used to determine how much you will get when you are made redundant:

  • Your age
  • The number of years you have worked for your employer
  • Your earnings before tax (also known as gross pay)

Your employer must tell you how your redundancy payments will be worked out, when you will get your redundancy pay and how you will be paid. However, if your employer has offered you a suitable alternative job within the business and you refuse to take it, you may not be able to get any form of statutory redundancy pay. The first £30,000 of a non-contractual redundancy payment you receive is tax-free.

How does redundancy work?

While there are some legal requirements that your employer must follow, every company will have its own redundancy procedure, which generally can be found in your company’s handbook. However, some companies, especially smaller ones, may not have a redundancy policy (or a staff handbook!) and this may be the first time they’ve had to go through this process too.

You can only be made redundant for three reasons:

  • Where a business is closing entirely
  • Where the location an employee works is to be relocated
  • Where the specific work that an employee carries out is no longer required

If you think you’re being made redundant for a reason not listed above, we’d recommend reading the section on redundancy on the ACAS website or picking up the phone to the Citizen’s Advice Bureau.

How does the Pandemic, Furlough and the Job Retention/Support Scheme impact all of this?

While the world and the economy has changed dramatically in recent months, It’s really important to remember that Coronavirus and its knock-on effects DO NOT affect your statutory redundancy rights. Your rights as an employee remain the same. 2 key things to remember: 

  • Being on furlough doesn’t affect your statutory notice pay.
  • Any statutory redundancy pay must be based on your normal wage.

I’ve lost my job and I need a new one  – ASAP. Where do I start?

Adzuna is on your side. Here’s a few tips to help you find work fast!

  1. We’re here to help you. Kickstart your search by visiting our Get Britain Working resources hub where you’ll find tips, tools and advice to help you find a new job.
  2. Arm yourself with data and know where you stand. Figure out who’s hiring in your local area, what they pay and how suitable your skills are for the jobs out there.
  3. Zero in on the right role for you. We have all the jobs in one place (over 500,000 of them!), to make your life easier. Get started here. We’d also suggest trying ValueMyCV!
  4. Stay positive – things will, eventually, get easier and you will find a job!