United_Digital1_8:Activist issue 7 12/06/2009 13:24 Page 17
united digital redundancy
17
– the facts
What you need to know should you lose your job
There’s no doubt that losing your job at this Any alternative roles offered do have to be means your national insurance will be paid
time of high unemployment and even higher suitable for you. and you may be able to claim jobseeker's
uncertainty can be devastating. According to allowance and other benefits.
the Unite redundancy database, in the eight Statutory rights
months from last September to this May, For those members in the situation where If eligible, the contributions-based jobseeker's
around 130,000 jobs in companies where unfortunately statutory redundancy is the only allowance is just £64.30 a week (£50.95 if
Unite members work have gone. option we thought it might be useful to let under 25). And you only get that if you are
you know what you are entitled to. (NB these actively seeking work. It isn't means-tested, so
Unite can help are the legal minima.) any redundancy payout won't affect your
It’s important to remember that Unite is here entitlement. But you won't get a penny until
to help you from the moment you hear the Statutory redundancy rights only apply to the period covered by any pay you received
bad news. In fact your Unite team could well employees. Casual staff, agency workers and in lieu of notice has expired.
have been involved in negotiating a settlement freelancers unfortunately have little
on your behalf. protection. These benefits are complex, but you can
check your entitlement online at
If your company is axing more than 20 posts Those who have worked at the same firm for Jobcentre Plus.
within 90 days, it is legally obliged to consult at least two years are entitled to statutory
Unite. If you don’t have access to a Unite rep, redundancy pay. You may also be able to claim housing benefit
contact your nearest regional office, who will If you are aged and council tax benefit, and if your income
be able to advise on how to contact someone • 21 to 41 it is a week for every full year you has fallen you should apply to get any child
who can help. For phone numbers and have been with the employer. But the tax credits recalculated.
addresses go to the Unite website page, payment is capped at £350 a week up to a
click on ‘regions’, then scroll over the maximum of 12 years Worried about your home?
map to find your regional office. • over 41 it is one-and-a-half weeks for The government has provided more generous
every year. But the payment is capped at rules on its income support mortgage
In the meantime it is a good idea to check out £350 a week up to a maximum of 20 years interest (ISMI), temporarily reducing the
your contract and find out about your rights. waiting time for new claims from 39 to 13
Many employers have redundancy terms set This ceiling of £350 a week is well below weeks, and doubling the mortgage amount
out and with Unite’s help you may be able to average pay – currently £479 a week. you can receive relief on from £100,000 to
negotiate a better deal. £200,000.
You will not be taxed on the first £30,000 of
If your company has previously had a round of redundancy pay but HM Revenue and Also check out the homeowners mortgage
redundancies in the past year, you might want Customs will tax salary paid in lieu of notice. support (HMS) scheme, which allows
to try and find out what packages have been Calculate your entitlement at the homeowners with mortgages below £400,000
paid to other employees. Were there any website Direct.gov.uk to repay just 30 per cent of the interest they
enhanced redundancy terms? How have owe for up to two years. To date only Lloyds
bonuses and commission been dealt with Employers often race through the statutory TSB, Halifax, Northern Rock and Bradford &
previously? Ideally you want to ensure process. If they don't follow it, your dismissal Bingley have signed up.
consistency. could be unfair and you could take them to an
employment tribunal. Contact your Unite Other lenders have indicated they will treat
Your contract of employment might allow you rep/regional office if you think this is the case. any homeowner in arrears leniently. Contact
to be paid in lieu of notice and untaken them to explain any problems sooner rather
holidays. Also find out the arrangements for When you’ve lost your job than later.
any bonuses or commission you might be Once you are unemployed, it’s time to
owed. consider your next move. Compile a CV and Cash flow
include any skills, training and achievements With any luck, you'll be back in employment
Don’t be afraid to challenge the reasons given you have gained. You might want to consider before too much damage has been done to
for being made redundant and the process whether you should be retraining or learning your finances, but until then, you should start
followed. Employers have to show that it's a new skills. You may want to build on your budgeting. Try the link to the government’s
genuine redundancy and you should be told experience by taking on further training or online calculator – see opposite.
about the selection criteria. start up your own business.
If you're having to choose which debts to pay
They have to consult you about it and search If you are made redundant, sign on at your off, this site may help you prioritise them,
for alternative employment within the firm. local JobCentre to look for work. This also starting with your mortgage.
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