10 things you need to know if you’re at risk of being made redundant or lose your job
MILLIONS of workers across the UK are facing redundancy in the wake of the coronavirus crisis as many businesses fight to survive.
Shocking figures suggest that around 600,000 people have already lost their jobs during lockdown, with more predicted to be on the horizon in the coming months.
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Chancellor Rishi Sunak warned of "hardship" and job losses ahead as he stressed that he can't save every single one.
The future of the nine million workers on the government's furlough scheme also hangs in the balances as employers take on some of the responsibility for staff pay.
Currently, 80 per cent - up to £2,500 a month - of furlough wages are covered by the state but from August, employers must pay workers' National Insurance (NICs) and pension contributions.
Then from September, businesses who continue to furlough employees will have to stump up 10 per cent of their wages, and 20 per cent in October.
Can I be made redundant if I'm on furlough?
EVEN though furlough is designed to keep workers employed, unfortunately it doesn't protect you from being made redundant.
But it doesn't affect your redundancy pay rights if you are let go from your job amid the coronavirus crisis.
Your employer should still carry out a fair redundancy process.
You will be entitled to be consulted on the redundancy lay-off first and to receive a statutory redundancy payment, as long as you've been working somewhere for at least two years.
How much you're entitled to depends on your age and length of service, although this is capped at 20 years. You'll get:
- Half a week’s pay for each full year you were under 22,
- One week’s pay for each full year you were 22 or older, but under 41,
- One and half week’s pay for each full year you were 41 or older.
Sadly, you won't be entitled to a payout if you've been working for your employer for fewer than two years.
There should be a period of collective consultation as well as time for individual ones if your employer wants to make 20 or more employees redundant within 90 days or each other.
You are also entitled to appeal the decision by claiming unfair dismissal within three months of being let go.
If you're made redundant after your company has gone into administration you can claim redundancy pay .
Meanwhile, the government funding will be reduced to 70 per cent of wages from September, and 60 per cent in October.
Here, we put together a round up of everything you need to know if you're worried that your job is at risk, including your rights and how to challenge the decision.
1. You must be given notice before being made redundant
Under employment laws, your boss can't just cut your contract on a whim - your employer legally has to give you your statutory notice period before asking you to leave the company.
Your employer must continue to pay you during your notice period.
If "payment in lieu" is in your contract, your employment can be ended without notice but you must be paid for the work you would have carried out during your notice period in one lump sum.
- Sex, gender reassignment, marital status or sexual orientation,
- Race, disability, religion or belief,
- Age,
- Your membership or non-membership of a trade union,
- Health and safety activities,
- Working pattern, for example part-time or fixed-term employees,
- Maternity leave, birth or pregnancy,
- Paternity leave, parental or dependants leave,
- You’re exercising your statutory rights,
- Whistleblowing, for example making disclosures about your employer’s wrongdoing,
- Taking part in lawful industrial action lasting 12 weeks or less,
- Taking action on health and safety grounds,
- Doing jury service,
- You’re the trustee of a company pension scheme.
3. You're entitled to a pay out
You’ll normally be entitled to statutory redundancy pay if you’re an employee and you’ve been working for your current employer for two years or more.
You’ll get:
- half a week’s pay for each full year you were under 22
- one week’s pay for each full year you were 22 or older, but under 41
- one and a half week’s pay for each full year you were 41 or older
Length of service is capped at 20 years, and weekly redundancy pay is capped at £525 with a maximum statutory payout of £15,750.
The person dealing with the insolvency - known as the "insolvency practitioner" or "official receiver" will give you a "CN" (case reference number). You cannot claim without the CN.
4. You're entitled to any unpaid holiday pay
Employers must pay you for any unused paid holiday if they make you redundant.
A government spokesperson said: "In the unfortunate event someone is made redundant, they can access the government’s far-reaching package of support including a half billion pound boost to the welfare system [Universal Credit]."
In the first six months you're entitled to 14 days holiday but you've already taken 10 days.
That means, your employer must pay you for the four days that you haven't taken.
But be aware that you only have three months to take action after your employment ends, Citizens Advice warns, and you may have to pay tribunal fees.
8. Redundancy shouldn't affect future job prospects
You're well within your rights to feel upset if you've been made redundant but don't let that stop you from applying for another job.
For example, if you you've been given one week's redundancy notice (five working days) and take four days off in total during your notice period to go to job interviews then you will only be paid for the first two days.
You shouldn't start a new job while your working your notice period with your current employer, although you can ask if they can terminate your contract early.
Those out of work, aged 18 or over, under state pension age and with less than £16,000 in savings may be eligible to claim the welfare payments.
If you don't qualify for benefits but you're worried about paying your mortgage, loan or rent, speak to your provider.
Mortgage providers, for example, are offering payment holidays while some banks are offering bigger overdrafts.
10. There are support groups to help you through the process
Being made redundant can be emotional and overwhelming but there are plenty of independent support groups that you can turn to for help.
Your employer may have hired an external company to provide support to employees facing redundancy, and these should give you independent advice.
If your employer hasn't put anyone in place to provide this kind of support then there are a few charities that you can also rely on.
The Money Advice Service is a charity that offers free advice to help you with your finances. You can contact them .
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Turn2Us can help you explore your options in terms of extra financial help if you've lost your job. You can find more information .
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