What happens when you are made redundant?
Being made redundant means that your job position is no longer required by your employer, leading to job termination. This is not due to your performance or behaviour but rather business decisions that make your role unnecessary.
Redundancy typically happens when:
• A company is restructuring to improve efficiency or reduce costs.
• A business is downsizing due to financial difficulties.
• A specific department or branch is closing permanently.
• A company is merging with another business, leading to overlapping job roles.
• New technology or automation makes certain jobs obsolete.
What happens?
If your employer decides to make you redundant, they must follow a fair and legal process.
Here’s what typically happens:
Consultation process:
• Your employer must hold a formal meeting to discuss the redundancy.
• They should explain why redundancies are happening and whether there are any alternatives.
• You have the right to ask questions and suggest other solutions, such as moving to a different department.
Notice period:
• You will be given a notice period before your employment officially ends.
• The length of the notice depends on how long you’ve worked for the company (e.g., in the UK, it’s usually at least one week per full year of service, up to a maximum).
• Some employers may offer pay in lieu of notice, meaning they pay you immediately but end your contract sooner.
Redundancy pay
• If you’ve been employed for a certain period (typically two years or more in many countries), you are entitled to statutory redundancy pay.
• The amount depends on your age, salary, and length of service. Some employers may offer enhanced redundancy packages as part of their policies.
• You should also receive pay for any unused holiday entitlement.
Final pay & benefits:
• Your employer must pay you any outstanding wages, bonuses, commissions, or benefits owed.
• Some company benefits (such as pensions, health insurance, or share schemes) may be affected, so it’s important to check with HR.
What should you do next?
If you’re facing redundancy, it’s important to:
• Check your redundancy package to ensure you’re getting what you’re entitled to.
• Look for new job opportunities as soon as possible.
• Apply for benefits or financial support if needed.
• Seek legal or financial advice if you think the redundancy process was unfair.
Being made redundant can be a challenging experience, but it’s important to remember that it is not a reflection of your skills or performance. It happens due to business decisions beyond your control. While redundancy can bring uncertainty, understanding your rights and entitlements—such as notice periods, redundancy pay, and job search support—can help you navigate the transition more smoothly.
If you’re facing redundancy, take the time to review your options, explore new career opportunities, and seek any support available, whether from your employer, government schemes, or professional networks. With the right approach, redundancy can also be an opportunity for a fresh start, leading to new and potentially better opportunities in the future.
