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Losing your job can feel like a catastrophe. Being called in to your boss’s office to be told that your services are no longer required is a major life-changing event which can leave you feeling depressed and hopeless.
But the choices you make immediately and the action that you put in place the moment that you are let go can make the difference between getting back on your feet fast or languishing at home feeling lost and without a role.
There is a major difference between being fired and being made redundant. Being fired generally means losing your job because you have done something wrong, not met your employer’s expectations or been found guilty of misconduct in your job. When you are fired, there is generally not a financial compensation package.
Being made redundant is what happens when your job no longer exists or is to be phased out. This could be because of staff cutbacks, the business is being scaled down or reoriented, a merger or a technological advance means that your job can now be done by computers or robots.
When you are made redundant, it’s generally not because of anything you have or haven’t done but because of circumstances beyond your control.
When you are told that you are not needed any more, the temptation may be to vent your anger at your boss and walk out immediately. But while this might give you a few minutes of satisfaction, you need to be slow down and think about the longer term. Try to stay calm and professional in all of your dealings with your boss and employer. Make every effort you can to remain on good terms with your boss, particularly if you are being made redundant because of economic considerations – you’ll want a good reference from your employer and to maintain a good relationship should things change in the future when your boss might consider reemploying you.
Before you do leave, make sure that you have the following:
However, many employers will have their own redundancy arrangements which will be more generous than the legal minimum. One good thing about redundancy is that you won’t pay tax on the first £30,000 of your compensation package although other benefits (like cars or medical insurance) will be taxable.
Oliver Jones has written for Solution Loans since 2015. His passion for personal finance comes through in the 150+ blog posts he's written since that time. His talent for explaining all things money means he's covered topics as diverse as...Read about Oliver Jones
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