So after being put on group consultation in June, I have finally been told that my job is being made redundant and have been given my leave date at work:
30th December 2016
Actually, my last day at work will be 21st December as I have a festive holiday booked in and wasn’t planning on returning to work until 2nd January, but 30th is officially my last day at work with New Co.
Emotions
Right now, I’m just glad that I’ve been asked to stay a little longer –  most people will be leaving at the beginning of November, including my boss. Getting over the financial hurdle that is Christmas makes me feel better.
I’m relieved that I finally know when I’m going to finish – although I’m of course sad about leaving, not knowing hasn’t been easy at all.
I’m also a little excited – after working for the same company for so long, I’m going to be doing something different – new year, new start and hopefully, new job!
Severance Package
With 21 years’ service under my belt (over two decades – gosh, that makes me feel so old!!), my package will come to just over a full year’s pay. There’s a possibility that I may even be able to sneak in part of my bonus as negotiations continue in that area but I’m not counting on it. A bonus if I get it 🙂
As I’ve never been made redundant before and have nothing to compare (except to UK statutory), I don’t think the package is a bad one. It’s not as good as the one our French colleagues are getting though but hey ho!
It’s hard not to keep thinking about what I will do with my redundancy money – I would love to just invest it all but need to remember that I will be living off it until I secure my next employment.
If I do find decent work pretty quickly, well then, I’ll have a nice sum to play around with, which might even shave a year or so off my FI plan.
Reasons to be cheerful
I could have made this into a sad and dreary post but I’d rather it be an optimistic one.
The future is bright, opportunities beckon!
Have a good weekend all!
Congratulations on keeping a positive attitude through all this! Good luck with getting another, hopefully better, job, and then the redundancy payment will be a nice boost for your investments as you say. Will you be starting to look for a new job straight away?
Thanks Steve.
I can’t say that I’ll be positive all the time but I would say that I will be more positive than negative.
At times, I think I will look for a job straight away but at other times, I think I may take a bit of a break.
I hate to be the voice of doom and gloom but being made redundant in the teeth of what is probably going to be be a recession is not going to be fun> The finance industry is likely to be more affected than most due to the inevitable contraction of credit that comes with recession. I would really be looking very hard for work right now. Best of luck
Hi Neverland
Thanks – I can always count on you to give me a reality check, so your voice of doom and gloom is appreciated! The finance industry is likely to be in turmoil, especially with Brexit happening and a recession on the cards. I would hope that my skills are transferable so that I won’t be limited to the finance industry, although that would be my preference. Or I may do something different – I haven’t looked at external job vacancies in many many years, so there could be something I’d not considered previously.
weenie,
Good to hear you remain positive and optimistic. Good luck with the job search – given your track record and range of skills, I am sure it will not be too long before you find something suitable. Also, do not rule out possibilities of some form of self employment – just a thought?
Hi diy
Thanks, I hope so too. I have given brief thought to self-employment but I have to say it’s not something that I really aspire to. I could go back to contracting, which is what I did after I graduated but have to say that I prefer the comfort of a permanent role working for someone else. So it wouldn’t be at the top of my list but I can’t dismiss it entirely.
Hi Weenie,
Whoa, big news just before the weekend! Wishing you all the best for your search – best to start it bright and early, I’d say. Hope you stay positive as much as possible – although at times this can be very difficult (that’s from someone who’s on the way out as well).
All the best, Pinch
Hey Pinch
Thanks and sorry to hear that you are in a similar position – hope all goes well for you too.
I know it won’t be easy but I will be staying mostly positive! 🙂
I experienced the same thing 3 years ago. You may run through the following emotions in order: disappointment, frustration, anger, fear, resignation, excitement, fear again.
I experienced all these and thought to hell with all and “retired” by spending a month on holiday on Italy. At the end I was crawling the walls with boredom and set up my own consultancy business (limited company) Best thing that ever happened to me once I got over the shock of actually finding my own work.
Today. just three years later, I’m financially secure (it helps that I’m just about to turn 55) and work 3 days a week. My advice – take the opportunity – there’s a whole big world outside the PAYE employed gig – a lot more fun too. Good luck!
Hi Colin
“disappointment, frustration, anger, fear” – I ran through these emotions when over a year ago, it was announced that we were being sold by Old Co. I’m now caught between resignation and excitement I think.
I don’t have enough in the pot to consider retiring early or just working part-time so will need to look for full-time work. As mentioned above, working for myself isn’t at the top of my list but not something I would dismiss entirely.
Thanks for sharing your experiences – sounds like you did really well!
Well at least you have certainty now. In many ways you were lucky to get 21 years in one job! I’ve been made redundant three times and the longest spell at one company was ten years. Best to see this as an opportunity to get a better job with more pay.
Hi John
I can’t say that the lack of certainty was giving me sleepless nights but certainly, I’ve slept better since I found out! Yes, I believe I am lucky to have worked for so long with one company – it’s certainly not the norm these days. This is a great opportunity for me and I look forward to doing something different (and earning more!).
Hey Weenie,
I’m sorry to hear about your redundancy being confirmed, however there are bright sides and it sounds like you’re already seeing them. First off, you have over 5 month’s notice of your end date…that’s a nice cushion to allow you time to prepare for what’s next. Second, that sounds like a very good redundancy package to me. I was made redundant from an IT development role of a well known insurance company and they only offered statutory (which is capped and nowhere near my actual salary equivalent). If you were to move straight into a new role in January you have all that redundancy money to do what you want with! Thirdly (and this is now moving into the realms of my personal opinion), it can be a very good idea to move companies periodically anyway, to avoid stagnation, boredom and stalled career progression. You may well find a new role for better pay and/or better benefits. Fourthly, when your company goes through the process of making you redundant they have certain legal obligations which they must meet. They have a duty to assist you with the process of finding onward employment, so you should be given time during your working hours to train in CV and interview skills, and for any interviews you need to attend. It is also your company’s responsibility to ensure that you have not been de-skilled in the role you’re performing which you’re being made redundant from…so if you would really need a formal accreditation elsewhere to get a job doing the same thing, you can ask your company to pay for this training/exam. I did this when I was made redundant, attending a PRINCE2 practitioner course for which I got the accreditation, all paid for by the company.
I think I’ve said before that contracting is definitely an option moving forward, that’s the path I took and I’ve been working in a much more flexible and profitable way for the last 4.5 years. Do let me know if you want any help/advice on this.
Sorry for the super long comment, but having been through a very similar thing myself a few years back I felt I had lots to add!
OR
Hey OR
Thanks very much for the detailed response.
I am so glad that we were able to secure something more than statutory – I think that would have been a real kick in the teeth, especially after working there for so long.
I hope I will be able to save/invest a large part of my redundancy – I may take a break to spend some time with my family, not sure yet.
I do agree with you about moving companies periodically to avoid stagnation – it’s just that I just ended up moving and changing roles within the same company!
I am relishing the challenge of doing something new.
We’ve been told that they will be holding training sessions for CV and interview skills and I will be making the most of them.
As mentioned above, I have contracted before so this would be an option for me to consider. That was over 20 years ago though, so thanks for the offer to help out, I may take you up on that offer if I end up going down this path.
Oh Weenie,
Good luck with the job search, it will be exciting to see what new roles will be out there for you to find out about after two decades!! Although a long job search can be challenging, I think the process of recalling all the good things you’ve done and learnt, along with going to interviews and talking about how great you are can be a positive experience. I hope it is for you.
If they are open to negotiation it might be worth thinking about extra things that you can ask for that would be easy for them to say yes too. Have they said anything about giving you access to training / CV clinics / time for interviews? For example, as your boss is leaving before you, can you be given his/her responsibilities and job title for November and December? Is there work equipment that they won’t need and could let you keep? Can you agree on a personalised reference?
Have a good weekend,
Emma
Hey Emma
Thanks and yes, it will be exciting to see what kind of roles are in the job market.
As mentioned above, New Co will be making available training sessions for CV writing and interviewing techniques etc and I’ll be taking advantage of those.
Nice idea about my boss but once he goes, I already know who my new boss is going to be and my responsibilities are different though it would have been great to have had his title for even a short while!
Personalised references or anything like that haven’t been mentioned – need to add to my list of things to discuss and good call about the work equipment – best check before it all gets turfed out!
Shame about not snagging the boss’s job title but I’m sure you’ll think of something that will be more valuable to you!
All the best
Sucks that your job was deemed redundant and you’re leaving work. But you’re given a lot of notice and a year of severance is pretty good. Having a mixed feeling is not a surprise. Given the long notice and a year of severance, you should have lots time to consider what you want to do with your next chapter.
Good luck!
Thanks Tawcan
I’m past being upset about leaving, though still a little sad that it’s the end of an era. I’m grateful that the company has given me so much notice and a decent package – I would have hated to have been told last minute with only say, a month’s notice that I no longer had a job.
Unfortunate news. What does industry is New Co in anyway? Even your boss is made redundant? That’s pretty severe cuts. I hope you find a new job soon and make good use of the severance package!
New Co is a finance company owned by a European bank (I’d rather not name names!)
Nearly 50% of the staff in our office is being laid off – the ones being kept on are Commercial folk (ie Sales and Sales support) and IT. A few roles have been relocated to HQ office down south.
Thanks for the best wishes.
When one door closes another quite often opens. I’m sure once you are in a better paying role providing more satisfaction you’ll look back and wonder why you didn’t leave much sooner.
In early 2011 I had an employment mishap. The end result was today I earn 60% more than I did prior to it. In hindsight it was one of the best things that ever happened to me and help accelerate me to FIRE. I’m sure this will provide a similar opportunity for you.
Hi RIT
Thanks and yes, I hope that will be the case, ie finding a better paid job which provides greater satisfaction.
Saving most of my redundancy money will add a good chunk towards FIRE so this is a great opportunity for me.
A 60% wage increase – wow, now that would be something to aim for!
Weenie this sounds fantastic, congratulations.
I find that it’s sometimes situations like that that can provide the best results. Not only do they provide a great opportunity, they also provide a great amount of self-satisfaction when you manage to get a new job, a better-paid job, a job you enjoy, spend less, be happier.
I’m looking forward to following your journey.
Thanks Cora, although the champagne is on ice until I secure a decent job and am able to save/invest a large chunk of my redundancy money!
Sorry to hear your news Weenie….on the one hand. On the other, as many including yourself have noted, it’s a chance for a reappraisal. From my experience, job hunting is like anything else, the more you put in the more you’ll get out, but having a really clear idea of what you’d like is always helpful. I’m sure you know the score, write out the goals, prioritise, start taking small steps towards them….good luck with it, I’m sure it will work out for you.
Cheers Jim. Right now though, I don’t have a really clear idea of what I want – more of the same job-wise, or something different? I will definitely need to write out goals, prioritise etc to get focus and reduce distraction!
Hey Weenie,
I hope you look back on this moment in a year and see this was the best thing that could have happened to you. You’ve got 6 months to find something new, and you’ll walk away with a very good chunk of change!
A colleague of mine is North American, and his2 year visa expires soon. He was told by my employer that we would not sponsor him so he has to leave in September. Two weeks after that decision was made, after some online applications, he now has a job in Australia (better pay and more responsibility) and is moving there straight from here! He went from devastated to over the moon like that…
Why not apply for jobs overseas? Sign up with a recruiter? Think outside the box, outside your comfort zone? What have you always dreamed of doing?
This could be a brilliant opportunity to do something completely new – best of luck to you 🙂
Anon Reader
Hi Anon
Thanks for sharing your colleague’s story.
My mum would love me to get a job in Hong Kong (where all the family live)…but it’s not what I want. That’s not to say that I would dismiss it totally, I think I’ve said before that I would consider it but it’s not at the top of my list.
I’ve worked outside of the UK before (did 6 months in Sweden) – I’d love to do something like that again so would check out those opportunities.
As I said to Jim – I could do something I’ve done before, or I could try something very different and yes, out of my comfort zone – we’ll see. It’s all very well me talking like this now with 5-6 months to go, but I might change my tune later on as the leaving day gets closer!
Thanks for stopping by!
Long-time reader, first time poster.
I just want to say I really enjoy your blog, and all the many other UK based sites that talk about financial independence and investing. It’s all a fantastic inspiration. It’s great you have gotten a decent redundancy offer, it gives you some wiggle room as to decide what to do next. However, just be careful you don’t spend too much time deciding on your next move. I have friends who have taken a year off, and they found it very hard to find roles and often even adjust back into working full-time after a long lay-off.
Hi Poor Bobby
Some of my friends have suggested I take some time out to go travelling on my redundancy money, ie a few months. Sounds tempting but I would be worried about coming back and having to adjust to working again. Of couse, the other side of the coin is that I love the travelling so much that I don’t go back to working again but I’ve not got enough in the pot to do that (yet!).
If anything, I’ll probably extend my Christmas holiday by a couple of weeks.
Thanks for reading and posting, it’s much appreciated!
Presumably you’re going to face a large tax bill on that redundancy money unless you bung a fair bit into a pension by 5/4/17?
According to HMRC this will depend on the amount paid, see here:
https://www.gov.uk/staff-redundant/redundancy-pay
Regards, Pinch
From the website:
Tax
Employees who’ve been made redundant only pay tax on payments over £30,000. They don’t pay any National Insurance.
Tax and National Insurance are deducted from other termination payments, eg payment in lieu of a holiday or notice.
As per the link kindly provided by Pinch, the first £30k will be tax free. My holidays and pay in lieu of notice will be taxed, as well as any bonus that I may yet be able to extract from company.
While it’s sensible to be cautious with your payout and proactive finding a new job I can’t see how anyone can say getting a years worth of pay in one huge lump sum is an overall negative situation…sure there are some negatives, but overall it’s got to be a positive in my book.
I don’t know anyone who’s been made redundant and hasn’t found a job very quickly and often they’ve been better than the last one anyway. Fair enough I live down south which supposedly is a jobs haven but pretty sure Manchester ain’t far behind and you’ve got plenty of skills and experience that employers will be after in any state of the economy.
And if you end up taking a slightly longer break than expected there are two words I know that should be able to see you through without eating into your payout all too much… 😉
Good luck as always!
Thanks TFS
I do see this as an overall positive situation – scary yes and also a bit sad that this part of my life as I know it will be ending but I’m excited about new chapters in my work-life! I don’t really expect it to be a smooth ride (that will give me something else to write about in this blog haha!)
And yes, I’ll need to keep the matched betting rolling, just to keep some income coming in. Hey, if I’m not working, I’ll finally be able to do some of the horse racing offers!
Just want to say if you don’t find a job straight away, don’t be down, as January is very difficult to secure a role, as everyone is recovering from XMAS and new years party and then lots of people are off, including decision makers.
It’ll be difficult to not feel anxious or worried, but try and get to the gym which will help alleviate your concerns…
I’m going to say this right now, even with the Brexit….a year from now you are going to be much better off, as there are opportunities abound!
Hi James.
Although I’m mostly an optimistic person on the outside, occasionally, worry will eat at me inside and I know that if time goes by and I end up not getting a job quickly, that little worry will start gnawing at me.
As mentioned above, it’s a good chance that instead of rushing back after my Christmas break, I may take an extra couple of weeks off in January and be fully refreshed when I get back.
I intend to continue going to the gym, to spend a lot of time and energy on the job hunting, to keep my mind busy and active.
The last time my job was at risk was in 2010. I bought a new suit thinking I would need it for interviews but I was saved from the axe. I tried this suit on again the other day and it doesn’t fit me…it’s too BIG! So one of the first things I need to do is to get it altered to fit!
I do see opportunities too, yes even with Brexit!
Thanks for your comment, it’s much appreciated.
Hi Weenie,
Sorry to hear the news, I’ve been offline for a while. Having experienced redundancy twice (once with immediate effect – with 6 months pay and another with 3 months notice and 1 months pay) I am impressed at the length of notice and the size of the payout, congratulations. It is good to have an FI mind, having money saved is a great cushion and the ability to have some time off is good. Not blowing all that money and looking to invest it wisely is a good idea.
I know people say, get a job, get a job; I rushed straight into a new job – pressured by the others leaving to get a new job asap. I ended up in one I didnt like.
I ended up leaving it after 6 months and have a few months off and now have a job that although it does not pay well ( I have less responsibility and demands on my time = so downsizing) I get more ‘Me time’. I have my weekends back and leave the office pretty much on the dot of 5pm rather than working extra hours. So there is more than just money at stake when it comes to seeking and securing that next job.
Good Luck and enjoy the next few months which will be full of leaving dos and if others move onto new jobs they may find that there is work for you too at their new place. Networking in full action.
Hi Sparklebee
Thanks. Your account of your getting a job you didn’t like has crossed my mind – how to balance getting a job I like within a decent timeframe, whilst ignoring peer pressure – it’s not going to be easy!
I don’t think my pot is quite big enough for me to consider jobs that pay a lot less than what I’m used to – for the interim maybe, but not for the longterm. Not yet anyway.
Whilst there is a lot of pressure on me in my current job, it’s been many years since I’ve slogged the extra unpaid hours – I stopped doing it when it was making me ill and losing weight. Job satisfaction ranks above high pay for me, although the ideal would be to have both!
Thanks for your kind words and advice.
Hey weenie,
I think your positive attitude is good but it’s bound to give you mixed emotions. How are you feeling now a month or so after this?
Best of luck
Chris
Hi Chris
I’ve now received my actual letter so have seen in black and white my leave date plus the amount of severance I shall be receiving (subject to holidays/any bonus). I experienced a little sadness when I saw the date, but in general, am still feeling quite positive, I’ve still got a job to do and I still want to do it well and hit my deadlines.
I am however looking forward to a bit of a break, which I should be able to have in the new year.
Oh no, I have been reading up on your blog and I am very sorry to hear this :(. But I admire your attitude and I am sure that someone who has such a positive “vibe” will find a good new position! Also you deserve to have a break and then there’ll be a new year and new opportunities for you. Wishing you the best of luck,
l3s0r
Hi l3s0r
Thanks for the kind wishes. As the date gets closer, it will get a little scarier but I’m determined to remain more on the positive side!