Being made redundant can be a hugely traumatic and potentially life-changing event.
Put simply, redundancy is a form of dismissal which occurs when an employer decides they need fewer employees in their business or organisation.
You have a number of rights under redundancy legislation. If you’ve been with your employer for two years, you’re entitled to statutory redundancy pay. You may also get contractual redundancy pay.
If your job is already at risk or you’re worrying about potential cuts, it’s important you take stock of your finances. This will help you start to take control and you’ll be able to cope much better if your income drops.
Once you have a clear idea of how much you’re spending, you should start thinking about how your budget will be affected if you lose your job. You can work out what you can cut back on so you can cope should you find yourself having to live on a lower income.
For the essentials – things like food and energy bills – try shopping around to get a better deal elsewhere.
When it comes to non-essentials, if you’re not getting value for money from them, stop doing them. It is also worth listing the smaller non-essential items you buy each day and put them in order of priority. Cut these out one at a time, starting with the least important.
If the worst happens and you’re faced with redundancy, the Scottish Government partnership initiative PACE (Partnership Action for Continuing Employment) can provide support to employees.
More information about PACE is available from the Skills Development Scotland (SDS) website, from the SDS helpline for individuals on 0800 917 8000 or the SDS helpline for employers on 0800 783 6000.