More seeking help with employment issues says Citizens Advice

17-12-2008

New figures released today by national charity Citizens Advice reveal that more people are seeking advice about redundancy, applying for jobs and claiming Job Seekers Allowance. Released the same day as the latest monthly Labour Market Statistics, the figures reflect the continuing effects of the economic downturn on the job market.

The figures show that since April 2008, Citizens Advice Bureaux in England and Wales have seen daily enquiries relating to redundancy increase by 125% across the service (from under 200 per working day in April to 425 per day in November). Daily enquiries to bureaux from people looking for guidance on Job Seekers Allowance have increased by 66% (from under 280 in April to over 450 in November).

Over the last financial year (April 2007 to March 2008) the number of enquiries from people seeking advice on applying for jobs rose by 76%.

According to recent research by the Chartered Institute of Personnel Development (CIPD) and KPMG a quarter of UK employers have drawn up plans to make redundancies in 2009.*

Citizens Advice Chief Executive, David Harker said:

"Rarely a day goes by without reports of yet another company announcing job cuts. In this current climate it’s imperative to know your rights and be able to access free advice if you have been made redundant or fear you may be.”

Citizens Advice is offering the following Top Tips for people at risk of redundancy:

1. If you have a contract, check it. You should be entitled to adequate notice of dismissal or pay in lieu of notice on top of your redundancy pay.
2. An employer must be fair and objective when deciding who should be made redundant. If you feel you have been unfairly selected for redundancy you can make a claim to an Employment Tribunal within 3 months.
3. If your employer offers you alternative employment it should be "suitable" i.e. similar pay, status, hours, location etc.
4. If the terms and conditions vary in the alternative job you can work for a 4 week trial period. If you find it unsuitable you may leave and you could still retain your right to a redundancy payment.
5. Once you have received your redundancy pay, be very careful about what you spend the money on until you have taken advice on how it may affect your benefits and tax position. You may be treated as still having the money even if you have spent it.
6. If you haven't got another job to go to, you might be entitled to help from the government or local authority in the form of benefits. Depending on your circumstances these could include Jobseeker's Allowance (JSA), Housing Benefit, Council Tax Benefit, free school meals for your children and help with NHS costs.

David Harker added:

"Redundancy is not the same as being dismissed. You can only be made redundant if your job disappears or your employer reduces its workforce.

When your employer chooses who to make redundant, it is illegal to use selection criteria which discriminate against anyone because of their age, gender, race, disability, sexual orientation, religion or belief.

If you are struggling to pay bills as a result of redundancy it’s vitally important to speak to your lenders straight away. If you would like free confidential advice on redundancy rights and entitlements get in touch with your local CAB. They can also give you a benefits check and provide advice on how to manage any debts you may have.”

Tips for people facing redundancy:

www.adviceguide.org.uk/index/whats_new_nov08_redundancy

Employment fact sheets:

www.adviceguide.org.uk/index/life/employment/employment_factsheets

Case Studies

A CAB in the North East reported how a male client, aged 39, with two dependent children, was made redundant from his position at a large mobile communications company in September 2008. The client was offered an alternative position. He was assured that this would be subject to a trial period of three months and should he decide not to take up the position permanently at any time during this trial period he would be able to leave and retain his entitlement to redundancy pay. The workload and responsibility within the new role was much larger than he was led to believe – he was now looking after 60% more staff than expected. He told the company within two weeks of starting the new role that he found the position unsuitable. Despite the client’s original redundancy letter clearly indicating that he had been offered a trial period and that his redundancy rights were protected until December 2008, the company reneged on this by informing him he could leave but would not be entitled to redundancy pay.

A CAB in the West Midlands reported a 38 year old female client who worked part-time in a children's nursery for six years and was made redundant. The client was only offered four weeks redundancy pay and no payment in lieu of notice. The client had also stated that the statutory increase in National Minimum Wage was not applied to her wages when it was introduced in October 2008.

A CAB in the Midlands reported a 62 year old male client who was made redundant from a maintenance job at a property company after seven years. The client, who was currently in the process of buying a house, was called to a meeting with his boss in September 2008 and told that he was being made redundant. There was no discussion, no selection, and an admission that the work would still have to continue to be done by someone else.

A CAB in the South East reported a male client, who after working for eight years as the sole employee of a building company, was told he was being made redundant because work had dried up. The client had no written contract. His boss paid him one weeks pay in lieu of notice and the client didn’t receive any redundancy pay.

Key facts

In 2007/8 the Citizens Advice service saw 1.9 million clients with 5.54 million issues, of which 500,000 were related to employment

There are 426 member bureaux, of which there are 653 bureau locations, 1,800 regular outreaches and 750 irregular or one-off outreaches

85% bureaux offer home visits, 35% offer hospital visits and 37% offer out-of hours service

Across the service, advice is given in 74 different languages

26,000 people work for bureaux, of whom 15,800 are volunteers, 6,000 are paid staff

* www.personneltoday.com/articles/2008/10/31/48180/redundancies-planned-by-a-quarter-of-uk-employers

Notes to editors on redundancy

Citizens Advice has recently updated its online guidance for people facing redundancy or who have been made redundant. The web pages offer comprehensive advice and guidance in four areas:

• when your employer can make you redundant
• procedures your employer must follow
• entitlement to redundancy pay and what to do if your employer doesn’t pay up
• claiming benefits and managing debts after redundancy

The information can be accessed at www.adviceguide.org.uk then searching for ‘redundancy’.

Notes to editors on Citizens Advice

1. The Citizens Advice service is a network of independent charities that helps people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more information in England and Wales www.citizensadvice.org.uk
2. The advice provided by the Citizens Advice service is free, independent, confidential, and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
3. Most Citizens Advice service staff are trained volunteers, working at over 3,300 locations across England and Wales.
4. Advice and information www.adviceguide.org.uk
5. Volunteer hotline 08451 264264 (local rate)
6. Citizens Advice Guide to your rights, second edition: January 2008 - over 600 pages of practical, independent CAB advice. An invaluable resource for any bookshelf - available from all good bookshops; price £11.99; ISBN: 9780141034089
7. Follow Citizens Advice on Twitter: twitter.com/CitizensAdvice
8. Subscribe to Citizens Advice press releases via RSS news feed: www.citizensadvice.org.uk/pressoffice