Important Moves to Make if You Have Lost Your Job

Losing a job can be a challenging and stressful experience, often leaving individuals feeling uncertain about the future. However, taking proactive steps can help you navigate this transition effectively and find new opportunities. Here are some important steps to consider ensuring a smoother transition and maintain a positive outlook during this period of change.

Assess Your Financial Situation

One of the first things to do after losing a job is to assess your financial situation. This means taking a look at your savings, expenses, and any severance package or unemployment benefits that may be available to you. Understanding your financial resources can help you create a budget and plan for the future.

It is important to be realistic and cut back on non-essential expenses during this time. This may involve making some temporary lifestyle changes, such as reducing dining out or canceling unnecessary subscriptions. Additionally, if you have any outstanding debts or loans, it may be a good idea to contact your creditors and discuss options for deferment or reduced payments until you are able to secure new employment.

Here are some practical steps to help manage your finances effectively if you lose your job in Australia:

Begin by taking a comprehensive look at your current financial status

• Calculate Your Savings: Determine how much liquid savings you have that can cover your essential expenses, such as rent or mortgage payments, utilities, groceries, and any other necessary costs. This assessment will help you understand your financial stability in times of unexpected events or emergencies.
• Check your superannuation policy: Check in with your super provider to see if you are covered for loss of income. If you are, that's great! If not, this could be a good time to update your policy to protect yourself against future job losses. Having the right coverage can provide peace of mind and financial security during unexpected times of unemployment. Don't wait until it's too late—review your options and make sure you're adequately protected.
• List Your Expenses: Itemize your monthly expenses, categorizing them into essentials (housing, food, utilities) and non-essentials (entertainment, dining out) https://moneysmart.gov.au/work-and-tax/losing-your-job.

Create a Bare-Bones Budget

Create your conservative budget, ensuring your account for all your expenses and savings. This budget is based on the assumption that you are single and managing your finances independently. Be sure to include categories like rent, utilities, groceries, transportation, and discretionary spending.

Focus on essential expenses to reduce unnecessary spending are listed below:

• Housing: Mortgage or rent payments.
• Utilities: Electricity, water, internet, and phone bills.
• Groceries: Basic food needs.
• Transportation: Costs related to maintaining a car or public transport financial-survival-guide.pdf (qantas.com.au).

Tap Into Available Resources

Utilize government and community resources designed to help people in your situation:

• Government Assistance: Apply for unemployment benefits through Services Australia. This may include Jobseeker Payment and other support programs 3https://www.qantas.com.au/infodetail/about/careers/financial-survival-guide.pdf.
• Community Support: Seek out assistance from local charities and community organizations that offer food banks, emergency relief, and financial counseling.

Manage Debt Smartly

Prioritize and strategize your debt payments:

• Contact Creditors: Discuss your financial situation with your creditors to explore options such as deferring payments, reducing interest rates, or negotiating a more manageable repayment plan. This proactive approach can help alleviate immediate financial pressure and establish a clearer path to financial stability. Banks often provide 3 months relief from mortgage repayments if you apply for relief on hardship basis.
• Focus on High-Interest Debt: Make minimum payments on other debts and focus on paying down high-interest debt first https://familyfs.com.au/how-to-reduce-spending-after-a-job-loss/.

Explore Financial Assistance

Investigate potential sources of financial aid:

• Superannuation Access: In certain situations, you may be allowed early access to your superannuation funds under hardship provisions. Check the Australian Taxation Office (ATO) guidelines for eligibility fpa_job loss_web_060315.pdf (plannersearch.org). To be eligible for early release of super you must have been on Centrelink Jobseeker subsidy for at least 26 consecutive weeks. In these circumstances the release of your super takes around 5 business days, albeit you are expected to be taxed at the marginal tax rate and lost your benefit of 15% super tax.
• Emergency Funds: If you have an emergency fund, now is the time to use it judiciously.

Consider Income Replacement Strategies

Look at ways to replace lost income:

• Freelancing/Gig Economy: Take advantage of freelance work opportunities or gig economy jobs. Ideally have yourself set up with simple income replacement strategies such as registered Uber Driver. NDIS support worker etc.
• Temporary Work: Consider part-time or temporary positions to bridge the gap until you find full-time employment.

Seek Emotional and Professional Support

Do not underestimate the importance of mental health and seeking professional advice. Maintaining mental well-being is crucial for living a balanced and fulfilling life. Professional guidance can provide you with the tools and support needed to navigate life's challenges effectively.

• Professional Counseling: Utilize services like Beyond Blue for emotional support.
• Career Counseling: Engage with career advisors to explore new job opportunities or consider retraining in a new field.

Understand Your Employment Rights

Navigating a job loss requires a clear understanding of your employee rights. This includes knowing your entitlements such as severance pay, notice periods, and accrued annual leave.

It's equally important to be aware of laws regarding unfair dismissal and discrimination that may pertain to your situation. Legal advice can clarify whether your rights have been breached and what steps you can take.

Understanding your employment rights is vital during a job loss. In Australia, various laws and regulations are in place to ensure fair treatment for employees. Here’s a comprehensive overview:

Employment Rights and Entitlements

1. Severance Pay (Redundancy Pay)

• Eligibility: Employees who have been made redundant may be entitled to severance pay depending on their length of service.
• Calculation: The amount is calculated based on the employee's years of continuous service with the employer.
• Fair Work Ombudsman: Use the Fair Work Ombudsman redundancy calculator to determine your entitlements.

2. Notice Period

• Minimum Notice: Employers must provide a minimum notice period before termination, which varies depending on the employee’s length of service. Alternatively, they may offer payment in lieu of notice.
• Contractual Notice: Check your employment contract for any specific notice periods agreed upon at the start of your employment.

3. Annual Leave

• Accrued Leave: Employees are entitled to payment for any accrued but unused annual leave upon termination.
• Calculation: This includes any leave loading if applicable.

Unfair Dismissal and Discrimination Laws

Unfair dismissal or discrimination can occur when an employee is terminated without a valid reason or in violation of specific legal protections.

1. Unfair Dismissal

• Definition: Occurs when an employee is dismissed in a harsh, unjust, or unreasonable manner.
• Eligibility: Employees must have completed at least 6 months of continuous service (or 12 months for small businesses with fewer than 15 employees).
• Fair Work Commission: File a claim with the Fair Work Commission within 21 days from the date of dismissal.

2. Discrimination

• Protected Attributes: Discrimination based on race, color, sex, sexual orientation, age, physical or mental disability, marital status, family or carer’s responsibilities, pregnancy, religion, political opinion, national extraction, or social origin is illegal.
• Human Rights Commission: Lodge a complaint with the Australian Human Rights Commission.

Steps to Take Legal Action for Unfair Termination

1. Gather Evidence

• Documentation: Collect all relevant documents including employment contracts, emails, performance reviews, and any correspondence related to your termination.
• Witness Statements: If possible, gather statements from colleagues who can corroborate your claims.

2. Seek Legal Advice

• Employment Lawyers: Consult with an employment lawyer to understand your rights and the strength of your case. Lawyers can provide guidance on the best course of action and help you through the legal process.
• Legal Aid: If you cannot afford a lawyer, consider seeking assistance from organizations like Legal Aid Australia or community legal centers.

3. File a Complaint

• Fair Work Commission: Submit an application for unfair dismissal. The commission will typically arrange a conciliation process to resolve the matter before it goes to a formal hearing.
• Court Action: If conciliation fails, your lawyer may advise taking the case to court for further adjudication.

4. Prepare for Conciliation or Hearing

• Representation: Your lawyer will represent you during conciliations or hearings. Be prepared to present your evidence and articulate how your dismissal was unfair or discriminatory.
• Outcome: Possible outcomes include reinstatement to your previous position, compensation for lost wages, or other remedies as deemed appropriate by the commission or court.

Caveat to Filing a Complaint

Understanding your employment rights and knowing how to navigate the process of claiming them is crucial. It ensures that you are treated fairly and justly during a difficult time of job loss. Empower yourself with knowledge, seek legal advice, and take the necessary steps to protect your rights. More information can be found on the Fair Work Ombudsman and Fair Work Commission websites.

When considering legal action against your employer in Australia, there are two legal pathways available. The first pathway operates under a "No Win, No Fee" structure. Despite its title, this option involves an initial conciliation with the employer for a fee of approximately 400 to 500 AUD. It is important to note that this service is not truly free as implied. Seasoned employees well-versed in employment matters are aware that this avenue often yields minimal results due to its ineffectiveness in addressing issues. Hence almost no cases are resolved at this point.

The second pathway is paid, this is where a formal case opened against your employer with the Fair Work Commission managed by Federal Circuit Court of Australia. The application and getting to the second-round conciliation take around four to six months. This pathway could cost you anywhere between 10,000 to 20,000 AUD. Most of the unfair termination matters are resolved at the conciliation point without proceeding to hearing. This is because the employer may not be worried about losing the battle, but it is most likely to be worried about being published by the Fair Work Commission as a result of being involved in the matter.

Once again, a season employer that knows the drill well would make an offer that would top up your legal fees for 3,000 to 5,000 AUD by offering you 25,000 for off court settlement. By this time, you would have waited for six to eight months for a resolution to only walk away with 3,000 AUD in your hands after your legal fees. So, it is fair to say the process is nothing but just towards the employee. The red tape is designed to look equitable and just on the surface, though it is engineered to wear you down psychologically and make you walk away.

The true challenge arises when the case moves to the courtroom. If the employer strongly opposes going public, they may propose a counteroffer. When evaluating the offer, factor in the expected duration of the court proceedings and your employer's financial stability in reaching trial. For instance, if the employer is grappling with financial woes, consider whether settling out of court might be a wiser choice than prolonging the case until the hearing. Consider the legal costs, time and emotional toll the process would take in deciding whether or not to settle off court.

Network, Network, Network

Meanwhile Network.

Networking is crucial for finding new opportunities. Reach out to your professional contacts, attend job fairs and connect with potential employers on LinkedIn. Don't be afraid to ask for introductions or referrals from people in your network. You never know where a connection may lead you.

Moreover, consider leveraging online platforms like LinkedIn and Indeed to effectively exhibit your valuable skills and extensive experience to prospective employers. By doing so, you not only enhance your visibility but also broaden your professional network. Engage actively within these communities, contribute thoughtfully, and interact with peers to bolster your likelihood of discovering promising career prospects.

Enhance Your Skills

As you search for new job opportunities, take advantage of the time to enhance your skills. Consider taking online courses or attending workshops to develop new skills that are in demand in your industry. This will not only make you more marketable to potential employers but also show your dedication and motivation to continuously improve yourself.

Moreover, volunteering or taking up freelance work can also add valuable experience and new skills to your resume. This can help bridge any gaps in employment history and demonstrate your adaptability and versatility.

Prepare for Interviews

As you start receiving job offers and interview opportunities, it's important to be prepared. Research the company and the role beforehand and practice your responses to common interview questions. Be confident in your skills and experience, but also be open to learning and growth.

Also, make sure to dress professionally, arrive on time, and bring a few copies of your resume with you. During the interview, remember to maintain good body language and actively listen to the interviewer's questions. Follow up with a thank-you email or note after the interview to show your appreciation for their time.

And most importantly, stay positive.

Truly Yours,

Narghiza Ergashova, CPA, EMBA