Redundancy alert: What to do if you lose your job in seven easy steps (2024)

If you’re facing redundancy or have just been made redundant, it’s a scary time. You don’t know when you’ll next find a job, and you might not have much in the way of savings. The MoneyMagpie team understand how stressful redundancy can be, so we’re here to reassure you that there are steps you can take to make it easier.

Make sure your redundancy is legal

If you’ve been working for your employer for over two years, there are certain rules they have to follow to make you redundant. This includes minimum notice periods and minimum redundancy pay.

ACAS have a useful guide to redundancy – and if you think you’ve been made redundant illegally, they can help you sort it out.

Unfortunately, if you’ve worked less than two years then you’re in a far less strong position. However, it’s important that rules are still followed – such as a written notice, confirmation of your final working date, and a statement of your final pay. Your pay cannot be withheld.

Update your CV immediately

We often leave our CV to languish on a forgotten hard drive when we’re happy in our jobs. But spending time on sprucing your CV should be the very first step you take when you hear that you might be made redundant.

Make sure you include your most recent skills, training, and tasks. It’s often surprising how much you’ve learned in your job even if you haven’t been there long! CVs are best when they focus on your recent work experience first, with education lower down the page.

Make sure to include a personal statement that can easily be customised for each job role you apply to, to save time and include some key words that’ll get you through any automated CV sifting processes.

Reach out to friends and family

Consider who is in your network – friends, family, colleagues, even clients and former customers. Reach out to them to let them know you’re looking for work. Many jobs are found through word of mouth, and getting a referral from someone already at a company can help strengthen your application.

Even if someone can’t help you find a new job, you might find they can help in other ways. Talking over the stressful situation of redundancy with loved ones can help reduce the anxiety around the process, and give you clarity about how to move forward.

Check you’re receiving benefits you’re entitled to

Finding a new job can take some time, so as soon as you finish your final day of work, apply for Universal Credit or other relevant benefits. This safety net is designed to help you survive through the jobless months – but it can take up to six weeks to get your first payment.

There may be other benefits you’re entitled to which you weren’t aware of before, such as Child Benefit and Council Tax Reduction. Use an online calculator like the ones on Turn2Us and EntitledTo to find out what else you might be able to apply for to help tide you over in the leaner months.

If you have a long-term health condition or disability, there may be disabled grants and benefits you can apply for like Personal Independence Payment. These will help with the additional costs of being disabled or chronically ill. If you’re currently pregnant and made redundant, Pregnant Then Screwed may also offer extra guidance.

Consider self-employment

If you’re experienced in your career and it is something you can create your own business in, consider whether now is the time to start up your own freelance career. Many people use their redundancy packages to cover the costs of starting your own business, and launch into the world of consultancy.

Self-employment isn’t easy and it’s not suited for everyone. However, the flexibility of hours, ability to advance your career by working in a niche, and control over your income make it an attractive prospect for many.

Take time off to job search

It’s important to take time off for your job search. If you’ve been working for more than two years for the same employer, they must allow you reasonable time off to attend job interviews.

If you haven’t worked two years, things are less flexible but most employers will allow reasonable times for interviews, such as starting late or leaving early. Try not to take your unused holiday allowance if you can avoid it, as this extra cash will help fund you through your unemployment period.

Keep a professional attitude

Redundancy isn’t personal, so it’s important to remember that when dealing with your employer. More than that, keeping any resentment under wraps is important when speaking with potential new employers. It’s tempting to bad-mouth a boss who chose to keep someone else instead of you during a round of redundancies, but this reflects badly on you in interviews.

Our final bonus tip is this: take the opportunity to reassess your life as a whole. Do you want to move to a new location? Has your job held you back from retraining? Perhaps you’d like to spend more time with your children.

Sometimes, we get so wrapped up in work, it’s easy to forget we should work to live, not live to work. Take a step back from the redundancy process and ask yourself: “Without the job tying me down, what do I really want from life?”.

This can help you make your next step decisions with mental clarity and positivity.