How to cope if you are made redundant

It's official. Britain is in a recession. In the last quarter of 2008 the number of people out of work leapt by 131,000 to a total of 1.93 million. It's not surprising that a recent survey by the TUC found that around 13% of workers (over 3 million) are concerned about the threat of redundancy.

It's not suprising considering the big names that have been hit. Woolworths closed its doors after 99 years on the British high street with the loss of 27,000 jobs. Luxury goods manufacturer Burberry soon followed with 1,100 redundancies announced. On top of that, Philips are shedding 6,000 jobs in the first quarter of 2009 and a further 850 job will go at Ford.

At the start of February independent analysts suggested that unemployment level, currently 1.93m, is likely to exceed the 2.8m mark by the end of the year.*

If your company has axed your job and you're facing redundancy, it is important to ensure that you are fully prepared to cope with the financial, professional and psychological challenges that you will face once your P45 lands on your desk.

What is redundancy?

Let's start by making it clear that it is your job that has been made redundant, not you. You have not been 'sacked'.

The global economic downturn has put most, if not all, organisations under pressure to compete and sustain their businesses. And if customers can't afford to buy cars, the likes of Ford cannot afford to continue building new ones and paying workers. So to remain competitive and ensure the long-term future of their businesses, they have to make job cuts.

Resist the urge to vent your spleen

When your boss does his Alan Sugar impression and says, "You're fired", your first reaction may be to howl, scream and let loose with verbal diatribe. But bite your tongue and save your frustration until you get home because a knee-jerk reaction at this stage may jeopardise any claim you may have for unfair dismissal.

And don't forget that you're going to need a reference sooner or later.

Don't take redundancy personally and be mindful that once you have been informed of your impending redundancy, your employer is legally obliged to grant you time off during your final weeks or months to look for a new job.

* The Daily Telegraph, 26th January 2009