Yahoo Finance Coronavirus: What to do if you think you might be laid off
The COVID-19 pandemic has turned the world upside down in just a few weeks. Millions of people around the world are facing job loss as a result of countries having to shut down to contain the virus. In the UK, one in 20 people have lost a job because of coronavirus, according to a YouGov poll, while almost one in 10 have seen their hours reduced.
Britain’s economy could shrink by 35% this spring, according to the Office for Budget Responsibility – and unemployment could rise by more than 2 million because of the coronavirus crisis.
Losing your job can be a huge financial hit, affecting your ability to pay your rent or mortgage, bills and your mental health. If you believe you might be at risk of being made redundant, there are certain things you can do.
Know your rights
If you are worried about being made redundant, make sure to check your employment contract, which will let you know what your rights are regarding pay and notice.
You can work out how much redundancy pay you might get by visiting the Direct.gov website. It’s based on age, weekly pay and number of years in the job. In the UK, you’ll normally be entitled to statutory redundancy pay if you’re an employee and you’ve been working for your current employer for two years or more.
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You’ll get half a week’s pay for each full year you were under 22, one week’s pay for each full year you were 22 or older but under 41, and one and half week’s pay for each full year you were 41 or older. Your employer can’t pay you less than the statutory minimum, but they may pay you more if your contract stipulates this.
You should also find out what your employer must legally do before making you redundant, so you can be sure you are being treated fairly.
Go through your finances
It’s also important to take a look at your finances and create a breakdown of everything you spend money on. This includes your rent or mortgage, all of your bills including internet and other monthly outgoings, food and other expenditures.
Next, work out how much money you need for the following few months and how much you have in your bank account. If you do lose your job, you may be able to cover your living costs with redundancy pay or with your savings.
There may be ways you can save money too. For instance, check if you could save money by switching energy suppliers or you may be able to reduce the amount you spend on food shopping. If you’re worried about getting into debt after your redundancy, Citizens Advice has a budgeting tool to see exactly where your money goes each month.
Seek support
Redundancy can take its toll on your emotional wellbeing in many ways, whether it’s the pressure to provide for your family or a loss of confidence and self-esteem. It’s important to seek support from trusted family and friends, as well as professional help if you need. The charity StepChange can provide information and advice.
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“Pick up the phone and lean on friends, family and colleagues to voice your concerns and whether they have been in a similar position themselves. They might be able to reassure you or put things into perspective,” says Roddy Adair, director at the recruitment firm Hays.
“Perhaps they might even be having similar thoughts themselves, so you could provide mutual support to each other. It helps to know that you’re not the only one struggling. If you do choose to confide in your colleagues, try not to instill doubt into them or spread any rumours.”
Look after yourself
“Investing in your wellbeing will also help you manage any negative thoughts about losing your job,” Adair says. “This may involve exercising, eating well and getting plenty of sleep. Even if the worst happens and your employer has no other choice but to let you go, looking after yourself means that you’ll be able to handle this outcome much more constructively and make rational decisions.”
