A NEW report from the British Chambers of Commerce reveals that almost a third of UK firms intend to cut staff by the end of September.

In the light of this news, credit broker , money.co.uk has prepared some advice and tips for those who find themselves told they’ll be made redundant – or fear this might be the case.

1. Work out if you’re entitled to Statutory Redundancy Pay

If you’ve been working for your employer continuously for more than two years, then you’re legally entitled to a redundancy payment. 

The amount you’ll receive will depend on several factors including: your age; the amount of time you’ve been working for your employer; your weekly wage; and whether you rcompany intends to offer above the legal minimum redundancy payment.

If you have been working for your employer for more than two years, you’re legally entitled to at least Statutory Redundancy Pay (SRP). 

The government’s SRP calculator at: https://www.gov.uk/calculate-your-redundancy-pay will ;help you work this out.

2. Know your rights if you’ve been working for your employer for less than two years

If you’ve worked for your employer for less than two years, they are not obliged to have a redundancy process and they do not have to meet you individually. 

It is, however, worth checking if your employer has a redundancy process, so you know what to expect. Redundancy processes can usually be found in your employee handbook or in your contract.

3. Know what you’re entitled to, even if your employer can’t pay

If your employer is unable to pay your SRP, then you can claim at least some of the money you’re entitled to from the National Insurance Fund. To claim, you need to write to your employer within six months of being made redundant, formally asking for your SRP. 

If they still do not pay, you can download and complete the Redundancy Claims Form from The Insolvency Service and submit to the Redundancy Payments Office or the insolvency practitioner handling your former employer’s case.

Alternatively, the Gov.uk website has a form you can complete if your employer has been made insolvent.

4. Use your working hours to find a new job

If you’ve worked for your employer for two years at the end of your notice period, you’re entitled to take reasonable time off to look for a new job or go on training. 

You should be paid your normal hourly rate, but only for up to 40 percent of a week’s work. For example, you could be paid at your normal hourly rate for up to two days if you work five days a week. 

Your employer may agree for you to take more time off, but you won’t be paid for this, unless your employer agrees, or your contract says you have the right to more paid time off. 

Not all employers are aware of this law, so they may not be willing to give you the time off. Citizens Advice has further information about what to do if they refuse.

5. Ensure you get things in writing

An employer can only give you notice of redundancy once they’ve finished consulting everyone and the minimum period of 30 or 45 days has passed. 

Once they’ve done so, they should, at least, give you notice of your redundancy in writing. This letter should include information regarding:

Your notice period

Your leaving date

How much redundancy pay you’re due

How your redundancy pay was calculated

Any other pay you are owed

When and how you’ll be paid

How you can appeal

6. Find out what can and can’t be taxed

The first £30,000 of your redundancy pay is tax free. Any redundancy pay over £30,000, your employer will take the tax from your redundancy pay at your normal tax rate.

7. Find out how your redundancy pay will affect any future benefits

If you’ve been made redundant and are now out of work, you may be entitled to claim benefits like Universal Credit. 

Redundancy payments are treated as capital for means-tested benefits. If your redundancy payment takes your capital to over £16,000 and you are under State Pension age, then you are not entitled to means-tested benefits.

If your redundancy payment takes your capital to between £6,000 and £16,000, you may be entitled to means-tested benefits.

Citizens Advice has more information along with links to help you calculate what benefits you can get.