Companies axing more than 20 posts have to consult any recognised union, says Sarah Veale, head of employment and equality rights at the TUC."If there is no union, they must consult with appointed workplace representatives. If they don't, you can take them to an employment tribunal, and could win compensation."What you get under statutory redundancy pay rules depends on your age. Between the ages of 18 and 21, you get half a week's pay for every year of service Between 22 and 41, you get one week's pay Thereafter, you get one-and-a-half weeks' pay. But these payments are subject to a ceiling of £280 a week, and the maximum you can claim is for 20 years' service.While many public sector unions negotiate good packages, deals in the private sector vary wildly. There is plenty you can do to protect your finances and get yourself back on your feet.Your payoffIf you belong to a union, it should negotiate a redundancy package on your behalf. Some 151,000 people were made redundant in the three months to August 2005, according to the latest figures from the Office for National Statistics - a rise of 23,000 on the previous three months. And continued economic uncertainty means the figure could rise still higher.Since April, when 6,000 MG Rover workers were made redundant, only one in three have found new jobs - and most of them had to accept a pay cut.But don't despair if your post is under threat. So much for job security - many of us believe we could soon suffer the trauma of being pushed out of work.
A recent survey by careers consultancy RightCoutts revealed that one in four respondents feared they could be made redundant in the next 12 months The statistics support these fears. "With mini stocks and shares ISAs, investments can be made in different asset classes - such as equities and fixed interest." A logical strategy for you, adds Mr Connolly, might be to go for a mix of pension contributions and ISAs - buying added years to increase pension entitlements, and investing in both mini cash and mini stocks and shares ISAs.. Specific negotiations for the teachers' pension are due to begin early next month, and you can keep track of these at www teacherspensions.co.uk. Meanwhile, although pensions can offer big tax advantages, they can be inflexible. For example, you can't get hold of the money you have invested until you come to retire. Contrast this, says Mr Connolly, with individual savings accounts (ISAs), where the tax benefits are limited by the size of your annual allowance but where there is far more flexibility. It was decided that proposals to increase the retirement age from 60 to 65 would apply to those who begin work in the future - though not to current public sector staff.
Earlier this month, for example, trade unions and the Government agreed a deal on the future of several public service pensions. "There is added pressure on public sector schemes to reduce their benefits and make them more affordable for the public purse," warns Mr Connolly. This may involve changes, he says, such as members paying larger contributions, or final salary calculations being replaced by average earnings ones. But he adds that even with a wider range of options, buying added years will give the most certainty. However, the terms on offer in the public sector could be set for an overhaul as many final salary schemes are struggling to meet their liabilities. This will give you access to the full range of pensions on the market.
