Losing your job due to redundancy can be a challenging experience. You can feel a whole host of emotions- anxiety, fear, stress, and even insecurity. But it's important to remember that redundancy doesn't have to be the end of the road. It may be hard to see it at the time, but it can actually be an opportunity to take the next step in your career and explore new opportunities.
At Pitman Training, we understand the challenges that come with redundancy. We're committed to helping individuals like you take the next step in their career journey- whether you are pursuing an entirely new field or building on your existing skills. Our courses help you turn a challenging situation into an opportunity for growth and personal development.
This article will examine redundancy, your rights, and your options for retraining after redundancy.
Redundancy
Redundancy is when an employer no longer requires an employee's role to be performed, resulting in the employee losing their job. It can occur due to various reasons, such as changes in the organization's structure, the introduction of new technologies, or a decline in business activity.
The pandemic saw record redundancies (400,000 in November 2020), and while the numbers have reverted to something closer to the average rates, approximately 100,000 workers can expect to be made redundant every month.
While redundancy can be a traumatic experience for employees, it's important to understand that it's a natural part of the business world. Many companies undergo periods of redundancy as they adapt to changing market conditions and strategic priorities—Brexit being the obvious current example.
Your rights in the event of redundancy
Employers have a legal obligation to follow a fair and transparent process when making employees redundant. This includes providing reasonable notice periods, offering consultation and support, and considering alternative roles where possible. Employees who have been made redundant may also be entitled to redundancy pay, a payment made to compensate for the loss of employment.
There are two types of redundancy pay:
- 'statutory' redundancy pay is what you are entitled to by law
- 'contractual' redundancy pay is any extra money your contract says you can receive on top of the statutory amount
Statutory redundancy pay is based on your earnings before tax (called gross pay).
For each full year you have worked for your employer, you are entitled to the following:
- up to 22 years of age- half a week's pay
- ages 22 to 40 - 1 week's pay
- 41 years and older - 1.5 weeks' pay
You won't need to pay tax on your statutory redundancy pay, but there are some limits to how much money you'll get.
What to do after being made redundant
If you've been made redundant, it's natural to feel uncertain and unsure about what to do next. But there are several steps you can take to help you move forward and make the most of this challenging situation:
1. Take some time to reflect: Losing your job can be an emotional experience, so take some time to reflect on what has happened and how you feel about it. This can help you gain clarity and perspective, and enable you to move forward with a clearer sense of direction.
2. Assess your finances: Losing your job can impact your financial situation, so it's important to assess your finances and make a plan to manage your expenses. This may involve cutting back on non-essential spending or exploring financial support options.
3. Update your CV and online presence: With a clear understanding of your skills and strengths, you can update your CV and online presence to showcase your abilities and attract potential employers.
4. Consider retraining: Retraining can be an effective way to upskill and make yourself more marketable to potential employers. Consider what skills are in demand in your industry and explore training options to help you acquire them.
5. Network and job search: Reach out to your professional network and start exploring job opportunities that align with your skills and career goals. Use online job boards and recruitment websites to identify potential openings and submit your application.
While redundancy can be a challenging experience, it's important to stay positive and proactive in the face of change. By exploring your retraining options and taking advantage of new opportunities, you can turn redundancy into a springboard for personal and professional growth.
Retraining After Redundancy
Retraining after redundancy can provide you with new skills and knowledge that will make you more attractive to potential employers. A range of training options are available, from short courses and workshops to full-time degree programs.
One option to consider is vocational training, which is designed to provide practical skills and knowledge in a particular trade or profession. Vocational training courses range from a few weeks to several years, and are tailored to the industry.
Courses can help you build on your current skills or even pivot into a totally new area.
Another option to consider is apprenticeships, which combine on-the-job training with classroom-based learning. Apprenticeships can be a great way to gain practical experience and develop new skills while earning a wage at the same time (although it is typically a much lower rate than standard pay).
There is lots of potential funding to help you pay for them, including career development loans and government funding.
Career development loans are bank loans designed to help you cover training and education costs. These loans are typically offered at a lower interest rate than regular bank loans.
Government funding offers a range of options to support individuals who are looking to retrain or upskill. These may include grants, bursaries, and loans, and eligibility will depend on your individual circumstances.
"When one door closes, another one opens". It's an old cliche, but it is never truer than in relation to life after redundancy.
With the right mindset, support, and resources, you can use redundancy as an opportunity for change and advancement. Maybe into a career you never thought possible before!
Our centres are all over the country, with a selection of learning environments- from classroom-based learning, online courses, and a mixture of the two.
If you have been made redundant- or are being made redundant- check out our courses today, to start the next chapter of your career.
