The labour market is slow and UK workers fear redundancy more than any other nationality in the world, according new research. The threat of redundancy has become more and more real for a number of people, the Enron and Worldcom scandals and uncertainty following on from recent world events have all been blamed. Leading personnel consultant Mike Morris sets the scene

Of course it will never happen to you - or will it?
Just in case, here is my 'cut out and keep' guide to being made redundant. This applies in UK only. The rules in the rest of EC tend to be tougher. In the US and many other parts of the world there is much less protection for employees.

Employers are obliged to notify their workforce as soon as they are contemplating redundancy. This is to stop them planning redundancies in secret and then springing them on their employees. Your employer is then obliged to consult you. This consultation is with a view to reaching agreement. Basically they can't just say 'I'm sorry but you are redundant and you leave a month on Friday. He must say 'I am proposing your position for redundancy and I want to consult you about it.'

This consultation must involve seriously listening to your ideas about how the redundancy could be avoided. You might offer to take a lower salary, for instance - or to work part time in order to save your job. Then there's the issue of selection. Why did they choose you? If there are others in the organisation doing similar work, there should be a fair method of selection. You have a right to know what it is and to be consulted about it. Have they carefully looked to see if there is alternative work, which you could do? It is very hard for an employer to justify redundancy in one department if there are similar vacancies elsewhere in the organisation. You'd be surprised how often managers try to use redundancy to get rid of employees they don't rate.

This consultation is not only with individuals. If 20 or more are being made redundant, there has to be collective consultation as well. This will be with the union if one is recognised. If not, then the employer has to organise elections to a consultative committee.

Then there's the question of compensation - you are entitled to statutory redundancy which is not a huge amount - a week's pay per year of service under the age of 41, and one and a half weeks for service at age 41 and over. There is also a cap on the weekly amount, currently £220. Then there's your notice. If you don't work it, you are entitled to be paid it, and these payments are usually tax-free up to £30,000. Also don't forget your outstanding holiday entitlement.

If you get to the point of accepting that there's nothing you can do to save your job, then there's still quite a lot to talk about. Can you up the redundancy money? Most employers pay more than statutory redundancy, if only to discourage you from going to an employment tribunal with an unfair dismissal claim. The employer could end up paying up to £50,000 in compensation if you can prove you've been unfairly dismissed, so it is worth bunging you a few more pounds to keep quiet. If they've got any sense, though, they'll make you sign a 'solicitor's compromise agreement' to give up your right to go to tribunal. You have to agree that you have received independent advice from a solicitor. Your employer should pay the solicitor's bill.

Then what about finding another job. If your employer makes you work your notice, they must give you time off to look for work. Many employers also give out placement help. This usually comes from a specialised agency who will help you up date your CV and generally point you in the right direction. If this isn't offered, ask.