Taking financial control after a redundancy
Losing a job can feel like a loss of security. It’s natural to feel uncertain about your financial future, especially if the redundancy was unexpected. There are practical steps you can take to respond positively to your changing circumstances and position yourself to move forward with confidence.
This guide will walk you through key actions you can take to regain financial control.
Ensure you’re paid what you’re entitled to
A redundancy process can be a lot to take in, so it’s important to know your rights. Depending on where you live and work, your employer may have a statutory obligation to award you a redundancy payment. Understanding exactly what you’re entitled to is a crucial step in managing your finances.
You may have the opportunity to speak to a legal adviser as part of your redundancy process. It’s worth making the most of this if you are able to, and confirming your rights. There are also redundancy calculators online, depending on where you live. For example, MoneyHelper in the UK and the Fair Work Ombudsman in Australia provide online tools you can use to check what you should be paid.
Claim state benefits
Depending on where you live, you may have access to a social security safety net to provide you with some income while you’re out of work. You’ll need to check with your local government as to what schemes might apply to you, and how to claim.
Many people hesitate to claim benefits – either due to the perceived complexity of the process or the hope of quickly finding new work. You should always make a claim as soon as possible to shore up your financial position, particularly as you may receive additional support in addition to the payments. For example, in the UK, if you claim New Style Job Seeker’s Allowance, National Insurance Contribution payments will be made against your record.
Budget effectively
A well-known management saying goes, “You can’t manage what you don’t measure” – a principle that applies just as well to personal finances.. Review your last 3-6 months of bank statements to gain an accurate picture of what you’re spending.
Without a budget, it can be easy to lose track of your spending, and you might be surprised to see your levels of expenditure in certain areas. From there, you can work out if there are any areas where you can make adjustments. One common area where you can typically cut back is on subscriptions to apps and streaming services. While the fees may be relatively low, the amount you pay every year can soon add up, especially if you have multiple subscriptions.
Tackle your debt early
Being in debt can be stressful at the best of times, and especially so if you are going through a redundancy. The idea of contacting your creditors may feel daunting, but it’s important to be proactive and reach out to let them know what’s going on.
Depending on where you live, you may also be able to access debt advice. For example, in the UK you can speak to National Debtline, in Australia the National Debt Helpline, and in Malaysia AKPK.
Use your Benevolent Fund
The Chemical Engineers Benevolent Fund is your charity. We’re here to support you through uncertain times. We provide short-term and one-off means-tested grants to help you get back on track, no matter where you live in the world.
You can read how we have supported other chemical engineers who have faced redundancy, such as Matt. Matt says:
“Redundancy was a shock I never saw coming. I'd worked for the same company for over 10 years, so I felt settled. One day I was secure in my career as a chemical engineer and the next, everything I’d worked for felt like it was slipping away. With a young family depending on me, the pressure felt overwhelming. To make matters worse, I needed essential hip replacement surgery just as I was gearing up to find another job. The stability I’d built for us suddenly felt fragile.”