What are my rights if I’m made redundant, including holiday, pension, and pay?

THE furlough scheme comes to an end today, so we take a look at your rights if you lose your job.

The future could look uncertain for the 1.9million workers still on furlough – we explain your rights following the end of wage support.

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It was previously reported that up to to 350,000 young people face redundancy as the scheme closes.

Research published in August by the Office for National Statistics (ONS) also showed that one in 50 firms expects to make cuts to the workforce in the coming months.

But what are your rights around holidays, pensions, and statutory pay if you are made redundant?

How much will I get if I am made redundant?

You are entitled to statutory redundancy pay if you have worked for your employer for two years or more.

The statutory rate is based on your age, weekly pay and number of years in the job.

You will get:

• Half a week’s pay for each full year you worked aged under 22
• One week’s pay for each full year you worked aged 22 or older, but under 41
• One and half week’s pay for each full year you worked while aged 41 or older.

Length of service is capped at 20 years.

In England, Scotland, and Wales the maximum amount of statutory redundancy pay is currently £16,320. However, in Northern Ireland it is £16,980. 

You cannot be paid less than the statutory amount.

The limits may change when a new tax year begins each April.

The government has a calculator on its website to help you work out how much you are owed.

You may get more than this statutory amount if your employer has a redundancy scheme. 

Redundancy pay up to £30,000 is tax-free.

Will I get holiday pay?

You are still entitled to any holiday pay you are owed for untaken holiday days at the end of your notice period.

This includes any holiday allowance you have built up while on furlough.

Alternatively, your employer has to let you take the days off before you leave.

However, if you have taken more days than your annual entitlement then your employer is within their legal rights to dock this from your final pay settlement.

Will I still get maternity pay?

You are still entitled to the usual 39 weeks of statutory maternity pay if you are made redundant and your employment ends in or after your “qualifying week”, which is the 15th week before the week your baby is due.

Statutory maternity pay is:

• 90% of your average weekly earnings (before tax) for the first six weeks
• £151.20 or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks

You will not get statutory maternity pay if you are made redundant and your job ends before the “qualifying week”.

However, you may be able to claim maternity allowance, which you can do at your local Job Centre.

If you are already on maternity leave and receiving statutory maternity pay when you are made redundant then you will continue to receive the payments for the rest of the 39 week period.

Keep in mind that employers cannot select a woman for redundancy purely because she is pregnant or on maternity leave – this would be unfair dismissal.

Citizens Advice has a guide to help you check your redundancy is fair.

You can work out how much maternity pay you might be entitled to on the Gov.uk website.

What happens to my pension? 

First, check what kind of pension your money is in and what benefits it offers.

You will need to decide whether to leave it where it is or transfer it somewhere else.

A financial adviser may be able to help with this.

Older workers may have final salary or defined benefit pension schemes.

These old-style pensions will pay out a set amount based on your years of service when you retire and this still applies if you are made redundant.

You may be able to transfer the money from these schemes but this can be risky so it is important to seek financial advice.

Most workplaces nowadays automatically enrol employees into defined contribution pension schemes.

The idea is that you and your employer make contributions and the money is invested in the stock market to build a pot of money for when you retire.

These schemes are set up in your own name so you can still access it even if you lose your job.

Your employer will no longer be making contributions and you would have to arrange to do this separately if you want to carry on.

In most cases, you can leave your pension in your existing scheme and just access it when you retire.

Make sure you know which company runs the pension scheme and give the provider your contact details so you can keep track of it.

Alternatively, you can transfer your workplace pension into your own personal pension or move it into a new employer’s scheme, if it will allow you to.

When can I apply for benefits or Universal Credit? 

You should apply for Universal Credit as soon as you have confirmation of your redundancy – the money is intended to help with your living costs.

If you have worked and paid enough National Insurance contributions, usually within the last two tax years, you may be able to claim a benefit based on your contributions too.

You do not have to wait until you have used up your redundancy payment to be able to sign up.

However, you will not be eligible if you have more than £16,000 in savings.

Citizens Advice has a benefits checker where you can see what benefits you may be entitled to.

Will I get help with my mortgage or rent?

Although you won’t be automatically helped with your mortgage or rent if you are made redundant, there are still steps you can take to access suport.

You can talk to your lender if you are struggling to pay your mortgage to see if it will help.

Lenders must only use repossession as a last resort and have to prove they have done all they can to help struggling borrowers.

Similarly if you think you won’t be able to pay your rent, it is best to talk to your landlord up front.

You might be able to claim Universal Credit housing costs or housing benefit to help pay your rent.

For more help on paying your bills, visit Citizens Advice.

What if I am struggling with debts?

There are plenty of services you can take advantage of that offer free and friendly advice on how to manage debt.

Most of them can offer you free guidance and help in person, over the telephone or online.

They can also help you take the next steps if you need a debt management plan (DMP) to tackle your debt or an Individual Voluntary Arrangement (IVA). These are agreements for managing multiple debts.

This post first appeared on thesun.co.uk