Being laid off can be a scary and overwhelming experience. Knowing what to do if you’re laid off at work will help you navigate the situation with clarity and confidence, reduce stress, and make sure you’re treated fairly during the layoff process.
1. What is Redundancy and Your Rights
Redundancy occurs when your employer needs to reduce their workforce, usually due to financial constraints or organisational changes. Remember, employers can’t use redundancy as an excuse to target employees unfairly. The redundancy payment you’re entitled to is based on your age, length of service, and weekly pay.
2. Consultation Process
Before your layoff is confirmed, your employer must go through a consultation process. If more than 20 employees are at risk of being laid off, the employer must do a collective consultation. This process allows you to raise concerns and ask questions about the layoff process. If the consultation isn’t done properly, you could have a case for unfair treatment.
3. Know Your Redundancy Pay
If you’re being laid off, you’re likely entitled to statutory redundancy pay, which is based on your age, length of service, and weekly pay:
Under 22: Half a week’s pay for each year worked
22 to 41: One week’s pay for each year worked
Over 41: One and a half week’s pay for each year worked
The redundancy payments are capped at a maximum weekly pay of £700 (2024). The maximum redundancy pay you could get is £21,000.
4. Check Your Notice
Your notice period is another part of the layoff process. This is the period between when you’re told you’re being laid off and when your employment ends. If you’re not given notice, you may be entitled to notice pay. The length of your notice period depends on how long you’ve worked for the company, from one week to 12 weeks for employees with longer service.
5. Alternative Employment
Before the redundancy is finalised, your employer must offer you any suitable alternative employment within the company. If a suitable role is available, you can accept or decline the offer. But declining the offer may affect your redundancy pay. This could be a good time to explore career changes and look at other jobs that match your skills and interests.
6. Job Search and New Opportunities
If you’re being laid off, it’s time to start your job search. Start updating your CV and looking for new roles. This is a chance to look for a new job or even consider a career change. You may want to connect with potential employers and explore opportunities that better align with your career goals.
7. Take Time to Focus on Your Mental Health
Being laid off can be emotionally draining. Feeling stressed about the future is normal. Make sure you manage your mental health and talk to friends, colleagues, or a professional about how you’re feeling. You could also reach out to a trade union for support, particularly if you have concerns about the redundancy process.
8. Redundancy Settlement Agreement
In some cases, your employer may offer you a settlement agreement. This is a legally binding document that outlines the redundancy terms. It may include a severance payment, extended notice period, or other benefits. Before you sign, make sure you speak to a solicitor who specialises in employment law to make sure the agreement is fair and you’re getting the best deal.
9. Think About the Financials
Cutting costs and managing your finances during layoff is crucial. If your redundancy pay doesn’t cover your outgoings, you may want to review your financial situation and look to reduce your expenses. This is especially important if you have dependents or a mortgage to pay. Make sure to also account for holiday pay, which you may be entitled to upon leaving your role.
10. Appeal an Unfair Layoff
If you think the layoff is unfair or not done correctly, you can appeal. The first step is to raise your concerns with your employer. If that doesn’t resolve the issue, you can take legal action by going to an employment tribunal to prove the layoff was done incorrectly or unfairly.
Redundancy FAQs
1. What if there’s no alternative job available when I’m being laid off?
If there’s no role available within the company, you’ll usually be entitled to redundancy pay based on your length of service.
2. Can my employer offer me a redundancy settlement?
Yes, your employer may offer you a settlement agreement as part of your redundancy package. Make sure you review this with legal advice.
3. Do I have to take a job if offered alternative employment during redundancy?
No, you can decline an alternative role, but this may affect your redundancy pay.
4. How much redundancy pay will I get?
This depends on your length of service, age, and weekly wage. You can use the government’s redundancy calculator to work it out.
5. What if I think my redundancy is unfair?
You can appeal or seek legal advice to see if you have a case for an unfair dismissal claim.
Conclusion
By understanding the redundancy process, checking your redundancy pay, and taking control of your job search, you can feel more confident during this difficult time. Whether you need career change advice, job opportunities, or just help with your finances, taking the right steps will get you back on track after redundancy.
