Made redundant - now what?

[ErickBroch]

Hi all. My DM has just found out she is being made redundant due to her job closing down - she has been given two weeks notice.

She has worked there for nearly 8 years, and from what I have seen online she is entitled to 2 months notice due to her time working there and has only been given 2 weeks!

I have tried reading up about severance pay and used the calculator online. It is a small business, so after this 2 weeks they will just vanish and that's that.

Can anyone give me some advice on what she should do now? Been told to call the CAB but not sure what for? How do we apply for severance pay?

Any help would be greatly appreciated, it is a very stressful time!

Sorry to hear that, it's a stressful thing alright.
I was fired from my last salaried job, and had 3 under tens in the house to worry about. It feels like the sky is falling down.

It sounds like the company is closing down? If so, there may be a long line of people and businesses that will have their hands out. After 8 years service, you'd expect a decent payout, but it won't be much. Employess are often lower priorities than other debts.

It's hard right now, but she could make a positive change from this? Changing career, or working for herself for once.

Personally, it was the best thing that ever happened to me. I'm now running my own business, which never would have happened if not forced to change what I had always done.
Good luck

They should pay PILON if they are not asking her to work her full notice period

Has she been told what money she will be getting?

Your DM should receive all the terms of her redundancy in writing from her company. This should include; her last day at work, redundancy pay, when the redundancy will pay will be paid, references for future jobs
The day after redundancy, she should apply for contributions based job seekers allowance or universal credit, because it is not back dated. Suggest she updates her CV asap

If you look on www.gov.uk or equivalent you can see what the statutory minimum pay out for redundancy is. The company may pay more. It is tax free up to 30k

Thanks everyone for all of your help - it is really appreciated. They are a small company and the owners barely ever even show their faces, they just told them verbally and left. I feel like it will end up having to go to a bloody tribunal to get anything from them.

I think you can claim redundancy pay from the government if a company goes bust and cannot pay it... someone else more knowledgeable will probably be along to correct or concur, but I seem to remember reading that you can claim your redundancy pay from the government in these situations.. not sure about notice pay.

Theres some info here if the employer is insolvent and thats why theyre closing www.gov.uk/redundancy-payments-helpline