14 the rules of re-engagement
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the rules of re-engagement 15
A personal affair
If you keep a clear head and know your
rights, redundancy can bring exciting new
opportunities. Kit Chellel looks at what the
individual can and should do.
B
ehind the grim unemployment statistics are
countless stories revealing the human cost of
recession.
A City lawyer loses his job and is unable to tell his wife.
Every morning he puts on his suit and leaves the house as
usual, to spend the day looking for work in city. Workers
in a car parts factory respond to the news of its closure
by barricading themselves in the building and staging a
protest on the roof. Both these examples demonstrate
how traumatic the experience of losing your job can be.
the right mindset
Employment professionals talk about redundancy in
similar terms to bereavement or serious illness. Those
affected react in stages – shock, denial, anger and
acceptance. “Redundancy can cause depression and lead
to breakdown,” says employment lawyer Jo Keddie. “It
can take people three to six months to pull themselves
off the ground.”
But there is another side to redundancy. Many axed “Some companies will have used this exercise to shape on departure. Johnson also points out that you should be
employees are embarking on new careers they had their businesses and deal with employees who haven’t compensated for any benefits that you might lose as a
considered for years but never had the courage to performed, are of a certain age or possibly people they result of losing your job. “Loss of pension benefits can
pursue, or using the pay-offs they received to start new have had internal issues with,” says Keddie, head of be particularly damaging,” he says. “Also you may have
businesses.

employment at Dawsons Solicitors. a contractual entitlement to benefits such as a car, bonus
It is also important to question the consultation process or commission. If so, you are entitled to compensation for
You cannot assume that HR
itself. However hard it might be to speak up, employers loss of these benefits too. Employers may be willing to
and management are fully
should not object to difficult questions about the selection extend health cover and other insurances for a period if you
procedure. Any decisions about who to retain must be negotiate hard enough.”
conversant with your contract
made fairly and if employers do not follow the letter of Up to £30,000 in redundancy compensation should be
the law they can be taken to the Employment Tribunal and tax free. You can also save on tax by having compensation
“Being made redundant can open opportunities people made to pay up to £66,000. paid directly into a pension scheme.
never would have thought existed,” says Shami Iqbal, a “You cannot assume that HR and management are fully
headhunter at search firm Sheffield Haworth. “There are conversant with your contract of employment or even, on the market
the right opportunities out there. You just need to find come to that, their own procedures,” says Johnson. “Often Back in the job market, should applicants tell a potential
them.” they are not. You need to make sure that you and your employer they have been made redundant? Iqbal, who
The experts say that managing the redundancy process legal adviser are.” helps City professionals find executive roles, says yes. “Be
correctly is vital, not just in terms of finding another job No company is immune from making mistakes at this open about the situation you are in. Explain why you’ve
but also in ensuring the best possible terms from your stage, even those which should be more familiar than most been made redundant - be honest.”
employer. From the moment a position is put at risk, it is with the redundancy rules – employment lawyers say that His advice is to learn new skills, attend classes and join
important to have the right mindset, advises employment law firms and human resources companies are some of the industry groups. And most importantly, make the most of
lawyer Tim Johnson. worst offenders. For example, it is commonplace in some personal connections. “People must not be too proud to
“Being made redundant, if it happens, can be a industries for staff to be told they do not have a future at use their own contacts. Getting personal referrals is vital,”
profoundly emotional and difficult experience but a company and that they should look for work elsewhere. he adds.
you need to channel your emotions towards positive Keddie says this is illegal and would be cause for legal With the jobless total at 2.5m, the highest figure in more
objectives,” he adds. “People who stay calm get better action. than a decade, the number of people being affected by
outcomes than people who let their emotions take over. redundancy shows no signs of easing. The key message
“One of the first questions for anyone whose job is exit Package from employment experts is not to take the threat of
under review is whether there is a genuine redundancy Assuming the process is fair, and you are selected or opt for redundancy lying down. “Too often companies exploit
situation. This means the job, rather than the person, is redundancy, the next step is negotiating an exit package. professionals who don’t want to be seen as trouble makers
no longer required by the company. If the company hires There are ways to maximise a pay-off even if an employer is if they are looking for a new job,” says Keddie. “Employees
someone else to replace you, it isn’t redundancy and it offering the statutory minimum. For example, must stand up for their rights.”
isn’t legal. any holiday accrued but not taken should be paid in full
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