We share some advice for what to do if you feel that your job security may be compromised.
The current state of the economy may make you concerned about the security of your job, especially if redundancies have been rumoured within your company, and your employer is noticeably struggling to stay afloat.
If you feel that redundancy could be on your horizon, or that you may be unable to continue your job for reasons that are out of your control, it’s worth doing everything you can to prepare yourself and your finances. We share some advice about what to do if you are worried about your job.
What are my rights?
One thing you can do to prepare for a potential redundancy is find out what your rights are should you be made unemployed. If your employer does decide that your position is to be made redundant, they must explain to you why you were selected for redundancy and also must do their best to offer you alternative employment within the company. If you feel that you have been made redundant unfairly, you have the right to take your case to an employment tribunal.
However if redundancy is an unavoidable reality, you will be given a certain amount of notice depending on how long you have been employed by your company. You will also be given Statutory Redundancy Pay on the same basis of the length of service with your employer, but the amount also depends on your age and current weekly wage. You can calculate what your redundancy payout would be here.
Do you have mounting debts?
If you are in debt and are worried about your job it is a good idea to try to pay off as much of your debt as possible. It’s advisable to start with your highest-priority debt first, and knock down what you owe systematically from there. Another method you can try is starting with your most expensive debt first to create a 'snowball' effect which could help you pay off your debts more quickly.
If you are having trouble paying off your debts it’s important not to ignore them, especially if you feel that losing your job could be quite a real possibility. Free advice is always available at the Citizens Advice Bureau, as well as many other non-profit organisations such as National Debtline and the CCCS (Consumer Credit Counselling Service).
Can I protect my income?
It might be worth looking into Income Protection Insurance if you are concerned that you soon may no longer be able to work in your current job. This will provide you with a liveable wage if you are unable to work due to accident or sickness. Most of these insurance schemes will pay you until you are ready to go back to work, so taking out such a policy may provide you with peace of mind if you are worried about your job.
However this kind of insurance does of course involve a cost, as you will be paying out a certain amount of your wages to the insurance company while you are still able to work. And if you do fall ill and are incapacitated, some Income Protection Insurance can take a long time to hit your pocket from the time you make a claim. Most policies will also have a qualifying period of a number of months during which you’ll be unable to make a claim.
Are you sticking to a budget?
With the recession in full flow it really makes sense to put together a budget and try your best to stick to it, especially if you are worried about losing your job. As well as helping you to have a sense of control over your finances it will hopefully go some way towards reining in your spending, so that you can start building up savings.
Keeping a spending diary for a month or so can be a great way to get a handle on what you are spending regularly and how you can consequently cut back. If you are worried about your job you’re likely to feel more secure knowing that you are only spending what you really need to, and are keeping a close eye on all your expenditures.
Do you have sufficient money in savings?
It’s always a good idea to have some money built-up in savings, but even more so if you are worried about losing your job. If you haven’t been setting aside a little every month, it’s worth starting to do so as soon as possible. Finding a savings account with a competitive interest rate is a good first step towards building a nest egg for yourself.
If you’ve already begun to build up a healthy balance in your savings account, it’s a good idea to maintain and add to that balance as much as you can if you are worried about your job.
Are you entitled to any benefits?
Even if you aren’t entitled to any benefits now, you may be able to claim a number of different benefits should you lose your job. Many people dislike the idea of claiming benefits, but if you are in trouble financially benefits are designed to help you out until you can find your feet again.
For example, if you lose your job for reasons that are out of your control, you may be eligible to receive benefits. Many different kinds of financial help are available – and if you know about the benefits you could claim before any potential job loss, you will be able to act faster should the worst happen.
