WORKERS who’ve sadly lost their jobs due to coronavirus may be entitled to redundancy pay and other rights – we round-up what you need to know.
It comes as major airlines, including British Airways, have warned that job losses are inevitable, while Flybe blamed the virus for speeding up its fall into administration.
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Meanwhile up to 800,000 businesses are at risk of going under as insurance won’t pay out for lost trade even if the government enforces lockdown.
We round-up your rights and what you can do about it.
Can my employer let me go because of coronavirus?
Ultimately, there’s no legal mechanism in place that stops an employer from sacking you, according to Citizens Advice.
But the charity says there still needs to be a fair reason for you being dismissed – for example, the business might downsize or fold and go into administration.
In this situation – you should be due a redundancy payout. More on this below.
If, however, you think you’ve been let go of unfairly – because you’ve simply taken time off work because of coronavirus, for example – you may have further rights. Again, more on this below.
It’s also worth pointing out that your employer can ask you to stay at home, cut your hours, or take unpaid leave if there’s not enough work for you.
In this scenario, if you’ve been continuously employed for one month, not refused work, and not been laid off because of industrial action, you’re entitled to statutory lay-off pay.
You’ll get up to £29 a day for five days in any three-month period – so a maximum of £145.
There’s no limit on how long you can be laid off or have your hours reduced for but you could apply for redundancy if you receive less than half a week’s pay for four weeks in a row or six weeks out of work in a 13-week period.
Can I challenge my employer’s decision?
Employees with over two years service have the right to claim unfair dismissal if they feel they’ve been unfairly selected.
Write to your employer explaining the reasons and you may be able to make a claim to an employment tribunal.
But be aware that you only have three months to take action after your employment ends, Citizens Advice warns, and you may have to pay tribunal fees.
Unfortunately, if you are a casual or zero hours worker and not an employee, or you are an employee with less than two years service, you can’t claim unfair dismissal.
In both scenarios Citizens Advice says you should consider getting legal advice.
Visit Citizens Advice to check if you qualify for legal aid or free help.
Can I claim redundancy if I lose my job?
You’ll normally be entitled to statutory redundancy pay if you’re an employee and you’ve been working for your current employer for two years or more.
You’ll get:
- half a week’s pay for each full year you were under 22
- one week’s pay for each full year you were 22 or older, but under 41
- one and a half week’s pay for each full year you were 41 or older
Length of service is capped at 20 years, and weekly redundancy pay is capped at £525 with a maximum statutory payout of £15,750.
Of course, some employers may give you redundancy packages on top of the statutory amount so check your contract.
If the company has gone under, you’ll have to apply for redundancy pay and unpaid wages online via Gov.uk or contact the Redundancy Payments Service on 0330 331 0020 if you do not have access to the internet.
The person dealing with the insolvency – known as the “insolvency practitioner” or “official receiver” will give you a “CN” (case reference number). You cannot claim without the CN.
I can’t survive on redundancy pay. What can I do?
If you’re struggling to get by on redundancy pay while you search for a new job, it’s worth checking if you’re eligible for benefits such as Universal Credit if you’re not on them already.
Charity Turn2Us has a free benefits calculator you can use to work out what you might be eligible for.
Those out of work, aged 18 or over, under state pension age and with less than £16,000 in savings may be eligible to claim Universal Credit.
It’s also worth checking if you can get help from your local council or in the form of a government loan.
Check if you’re eligible for food banks.
If you don’t qualify for benefits but you’re worried about paying your mortgage, loan or rent, speak to your provider.
Mortgage providers, for example, are offering payment holidays while some banks are offering bigger overdrafts.
You should also consider turning to a free help organisation such as Citizens Advice or StepChange.
