Why Redundancy Can Be a Great Opportunity

Written by RAC Editor
Last updated November 25, 2020

Although redundancy has many downsides, have you ever considered it as a great opportunity? Take a look at the reasons why this may be the case for you.

Redundancy brings about a significant change in your life. But who’s to say this has to be a negative one? Whatever stage of your career you find yourself in, it can provide you with time to take a step back and figure out whether you feel happy and fulfilled in what you are currently doing.

After receiving a redundancy payment, you will have something to tide you over until you find your next job. So don’t feel like you have to rush and jump straight into the next role that comes along.

There are many ways that you could use this time to your advantage, including:

Refresh your skills

Is there a course you have always wanted to attend but have never had the time alongside work? Do you feel like you need to refresh some of the skills you already possess? Whatever it may be, use this time to focus on enhancing yourself and your employability. Employers will look favourably on you utilising this period to improve your prospects.

Explore different career opportunities

If you have been considering pursuing a different career path for a while, now is the perfect time to explore it! Carry out some research into the type of roles you are interested in and what skills or experience you need. Use your network to your advantage and reach out to people you know within that specific field. They should be able to provide you with some pointers and advice. If you need some specific training or qualifications, incorporate it into your skills refresh.

Volunteer

If you are really passionate about a cause or want to give back to your community, why not do it? If your redundancy payout tides you over for some time, you will now have the ability to lend a hand. Of course, it is important to remember, just because you won’t be paid, doesn’t mean you won’t get something out of it. You will still be utilising and developing your skills, alongside gaining valuable experience that employers look for.

Have a well-earned break

Being made redundant is a lot to process. Take some time out for yourself and have a break. You could use the money to do something you’ve wanted to do for a while, go on holiday (lockdown permitting) or just spend time at home. Whatever it may be, time like this is very rare, so make the most of it!

Can benefits be claimed immediately following redundancy?2020-11-20T09:11:26+00:00

Depending on your situation, you may be able to claim benefits immediately following redundancy. You do not have to wait until you have used up your redundancy payment to be able to apply for benefits. One of the first things to look into is Jobseeker’s Allowance (JSA). Even if your current financial situation means you do not need benefit contributions, JSA has additional benefits. For example, you may be able to receive credit for your national insurance NI account, meaning you’ll be receiving NI contributions as though you were working. However, you cannot claim JSA while you are still being paid payment in lieu of notice. This is because you are still officially employed while receiving this payment. If you are struggling to get by on your redundancy pay alone, then it is a good idea to apply for Universal Credit until you find a new job. 

Can being made redundant impact your job prospects?2020-11-20T08:56:17+00:00

Redundancy shouldn’t affect future job prospects. You can start your new job search swiftly following your redundancy notice and may find yourself a new and better position in no time. Facing redundancy can be emotionally draining, but you can use this experience to your advantage. Being made redundant doesn’t make you a bad employee. By addressing the reasons why you lost your job, you can spin this to your advantage in an interview. 

Last Updated: Tuesday November 24 2020
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