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Redundancy

Coping with change

We can help you understand your options if you are made redundant

Redundancy is now more common as both employers and employees move away from a ‘job for life’ mentality.

Between two and three per cent of employees in Australia are made redundant every year. So if it happens to you, you are not alone. While redundancy is a stressful event, the majority of people who are made redundant go on to start a new job, at a higher salary, within a year – so a positive outcome is quite likely.

A financial adviser can discuss your situation and help you make decisions that can get you back to work.

If you are made redundant or expect to be soon, then consider the following tips to help you cope:

  • Recognise the emotional impacts — there may be a normal ‘grieving’ process following such a significant life change
  • Avoid making hasty decisions about how you’ll use your redundancy payment.
  • Ask what help is available from your employer, for example, many companies offer outplacement services, redeployment or employee assistance programs.
  • Educate yourself about your entitlements. Ask your HR department or your accountant for advice.
  • Start networking as soon as you can. Get in touch with people in your industry and put your feelers out — develop a list of contacts and focus on your transferable skills.
  • Talk to Centrelink to see if you are eligible for any assistance – try to do this quickly so you have a clear view of your situation.
  • Create a new budget so you can cut back on spending that is not essential.
  • Discuss your mortgage repayments with your lender, as you may be able to access your redraw facility or to reschedule your repayments.

To help you cope with redundancy, speak to your financial adviser as soon as possible.  If you don’t have a financial adviser, we can help you find one.

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