How to Cope with Being Made Redundant
After the shock of being made redundant, what do you do next? Navigate your next steps with us.
May 2021 – 3 minute read
Key takeaways from this article:
- How much you should receive from a redundancy payment
- What to do with your redundancy payout
- How to protect your finances
- What to do after being made redundant
Sometimes things happen in our lives that are out of our control. Being made redundant is one of those events that can have a big impact in your life. You may be left asking yourself “what now?”. Redundancy can happen at any age and everyone’s situation is different.
If you think you may be at risk of redundancy or you have been made redundant, it is important to understand how to recover both financially and mentally.
What If I Feel Hurt By Being Made Redundant?
Redundancy can be overwhelming. It’s okay to feel angry and it’s okay to feel sad - some people liken the feeling of redundancy to grief. Lean on your loved ones and the people around you for support through this difficult time. Try to look forward to the future and embrace the unexpected change. You never know what is on the horizon.
Redundancy Payment – How Much Should I Receive?
If you are made redundant, you will receive a payout based on how long you have been with your current employer. According to Fair Work, the amount is paid at your current pay rate based on the following table:
|Period of continuous service
|At least 1 year but less than 2 years
|At least 2 years but less than 3 years
|At least 3 years but less than 4 years
|At least 4 years but less than 5 years
|At least 5 years but less than 6 years
|At least 6 years but less than 7 years
|At least 7 years but less than 8 years
|At least 8 years but less than 9 years
|At least 9 years but less than 10 years
|At least 10 years
What Should I Do With My Redundancy Payout?
Depending on how long you’ve been at your workplace, your payout could be sizeable. It is important to remember that while you are unemployed, this money is what you’ll be living off. Work out realistically how much you need each week to live and budget accordingly. You don’t know how long the road ahead to your next job is, so be sensible with what you have.
Protecting Your Finances
Being made redundant means that the normal payments you make towards your house, car or other fees, may not continue as planned. If you are currently in debt, avoid taking out more credit to pay what you owe. Let your bank or creditors know you have been made redundant and they should give you a little leniency as you get back on your feet.
It’s hard to know where to begin after being made redundant. Blow off the dust from your resume and give it a read through. Not only will you need to add your most recent role, you might need to freshen the whole thing up. Make sure your LinkedIn profile is up to date with current information, as this will help with suggested jobs and potential employers.
Since you may have been in your role for a while, it may be time to upskill. There are plenty of free courses and lessons available online (YouTube etc.), and they can be valuable for learning new skills.
It doesn’t matter if you were in your role for 10 years or 10 months, you most likely would have established some sort of professional network. Reach out to your network and let them know you are looking for a role. You never know when and where something might come up.
Looking Forward from a Redundancy
There’s no doubt that going through a redundancy is tough. It can be easy to feel sorry for yourself, and that’s okay for a bit. However you need to rise up and seize the change in your life. There’s plenty of opportunities out there – you’ve just got to find them.
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Things you should know
This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness for the information to your own circumstances and, if necessary, seek appropriate professional advice.
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