What are my rights if I’m made redundant, including holiday, pension, and pay?
THE furlough scheme comes to an end today, so we take a look at your rights if you lose your job.
The future could look uncertain for the 1.9million workers still on furlough - we explain your rights following the end of wage support.
It was previously reported that up to to 350,000 young people face redundancy as the scheme closes.
Research published in August by the Office for National Statistics (ONS) also showed that one in 50 firms to the workforce in the coming months.
But what are your rights around holidays, pensions, and statutory pay if you are made redundant?
How much will I get if I am made redundant?
You are entitled to statutory redundancy pay if you have worked for your employer for two years or more.
The statutory rate is based on your age, weekly pay and number of years in the job.
You will get:
- Half a week’s pay for each full year you worked aged under 22
- One week’s pay for each full year you worked aged 22 or older, but under 41
- One and half week’s pay for each full year you worked while aged 41 or older.
Length of service is capped at 20 years.
In England, Scotland, and Wales the maximum amount of statutory redundancy pay is currently £16,320. However, in Northern Ireland it is £16,980.
You may get more than this statutory amount if your employer has a redundancy scheme.
What happens to my pension?
First, check what kind of pension your money is in and what benefits it offers.
You will need to decide whether to leave it where it is or transfer it somewhere else.
A financial adviser may be able to help with this.
Will I get help with my mortgage or rent?
Although you won't be automatically helped with your mortgage or rent if you are made redundant, there are still steps you can take to access suport.
You can talk to your lender if you are struggling to pay your mortgage to see if it will help.
Lenders must only use repossession as a last resort and have to prove they have done all they can to help struggling borrowers.
Similarly if you think you won't be able to pay your rent, it is best to talk to your landlord up front.
You might be able to claim Universal Credit housing costs or housing benefit to help pay your rent.
For more help on paying your bills, visit Citizens Advice.
What if I am struggling with debts?
There are plenty of services you can take advantage of that offer free and friendly advice on how to manage debt.
Most of them can offer you free guidance and help in person, over the telephone or online.
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They can also help you take the next steps if you need a debt management plan (DMP) to tackle your debt or an Individual Voluntary Arrangement (IVA). These are agreements for managing multiple debts.
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