Your Guide to Redundancy in the UK

Being made redundant can be a horrible feeling. Not only is your self-worth as an employee affected, but you’re also left without a paycheck. Thankfully, the law guarantees some basic rights for those made redundant. From redundancy pay to help finding work, this guide tells all. 

Think about it: You may dedicate years to an employer, working hard to meet company goals. To be suddenly dismissed for factors outside your control can be very hard to digest and you may feel like a part of you has been taken away. 

On top of that, the UK is facing a cost of living crisis that may make paying your bills harder. While you may be able to find another job, it’s not guaranteed that you can find one immediately. You may have to rely on your savings, which can be a stressful and anxiety-inducing scenario. 

So, exactly what are your rights? And how do you go about claiming it? Let’s find out. 

Being Made Redundant in the UK

If you’re made redundant in the UK, you’re entitled to redundancy pay, a paid notice period, and any money owed to you by your employer such as unpaid wages. Your employer will pay you these directly. In case your employer has become insolvent, you’ll get paid by the Insolvency Service instead. 

Struggling with the cost of living crisis? You might be eligible for household support like a cost of living payment, energy-saving tips, and more. 

What to Do If Your Employer Has Gone Insolvent

Being paid by your employer is straightforward, but it’s not the case if your employer has gone insolvent and you need to get paid by the Insolvency Service instead. You’ll need to apply online, but wait until the date* your employer went insolvent to do so. 

*The date your employer went insolvent can be found on your factsheet. Alternatively, you can also contact the insolvency practitioner handling your employer’s insolvency for this information.

Here’s how:

1. Make sure you have a CN number before you begin. If you don’t have one, you can contact the insolvency practitioner. 
2. Complete the online application using the following information:

• Your bank account details
• Your National Insurance number
• Your email address
• Start date of your employment
• The date of your redundancy
• The date of your last working day
• Your gross rate of pay
• Any breaks in employment
• The number of holiday days you’re entitled to and holiday days you’ve taken
• Details of wages and other money you’re owed by your employer
• Details of any money you still owe your employer (for example season ticket loans)

Need to make a claim for loss of notice pay? You can do so online and you’ll need an LN reference number for it. You’ll get this number after you’ve filled in the online claim for redundancy and other money owed. 

3. Wait for payment. This can take up to 6 weeks. You may also be requested to provide additional information during this time. 

Unemployment-related Benefits in the UK

Besides redundancy-specific benefits, you’re also entitled to unemployment-related benefits if you lose your job in the UK. These include universal credit and allowances. What’s more, you can also get career advice and help finding work or training programs from government support services. 

Types of benefits 

• New Style Jobseeker’s Allowance (JSA)
• New Style Employment and Support Allowance (ESA)
• Universal Credit
• Pension Credit

Further help may also be possible for disabled persons, carers, or those looking after family.

Conclusion

Being made redundant in the UK means you’ll also lose your employee benefits such as group health insurance plans. This can make accessing healthcare more challenging as you might not be able to afford private healthcare or be stuck in a long wait queue associated with the NHS. 

The good news is that you may be able to get a private health plan that’s suited to your needs and budget with the help of a reputable broker like Pacific Prime UK. What’s more, we also provide a number of value-added services to support you throughout your insurance journey. 

Contact us today!

Frequently Asked Questions

How many types of redundancies are there?

There are two types of redundancies: compulsory and voluntary. The former is when a business reduces staff or shuts down entirely, while the latter is when employees are offered the chance to be dismissed. 

Why are employees typically made redundant?

Reasons employees are made redundant typically includes a workplace that’s closing down, a business that’s being transferred to another employer, a job that no longer exists, new systems of working that reduces the need for employees, and more.

How can employees deal with being made redundant?

Being made redundant can be very hard on employees. The best way to deal with it is to not take the redundancy personally and to avoid panicking. Know your rights, get support, and come up with a plan of action for finding a new job. 

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Suphanida Thakral

Senior Content Creator at Pacific Prime UK

Suphanida is a Senior Content Creator at Pacific Prime, an award-winning global health insurance and employee benefits specialist.

With over 5 years of experience in the field, Suphanida spends the majority of her day synthesizing complex pieces of insurance-related information and translating this into easy-to-understand, engaging, and effective content across a variety of media such as articles, infographics, whitepapers, videos, and more.

Suphanida is also responsible for planning and publishing three whitepapers released annually by Pacific Prime: The State of Health Insurance Report, The Cost of Health Insurance Report, and The Global Employee Benefits Trends Report. Additionally, she handles the LinkedIn profiles of Pacific Prime’s Founder and CEO, as well as Global HR Lead.

Suphanida’s strengths lie in her strong research and analytical skills, which she has gained from her BA in Politics from the University of Warwick and Erasmus Mundus Joint MA in Journalism from Aarhus University and City, University of London.

Being of Thai-Indian origin and having lived, studied, and worked in Thailand, the UK, and Denmark, Suphanida also has a unique, multicultural perspective that helps her understand the struggles of expats and globetrotters.

Outside of work, she enjoys traveling to new places and immersing herself in different cultures.

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