How Expats Can Get Control if Working Abroad and Made Redundant

There are very real concerns in the UK that the jobless total could top three million by the end of the year, as a result, we have witnessed an increase in the numbers of people contacting us for information about moving abroad to live and work.  At the same time however, the grass is not necessarily greener abroad.

We’re all well aware of the jobless levels in America for example, but many nations around the world are feeling the effects of the global fiscal fallout, and jobs are being cut as a result.  Therefore, even those expatriates who are living abroad to further their career or who are simply living and working in another nation, are not immune to the threat of job loss.

In this article we will look at how expats can get control of their lives and their finances back if they are working abroad and are made redundant.  It can be harder for expats if they do lose their job as there may be no state safety net, and also because they may find themselves vulnerable to loneliness and stress as they are physically separated from their former support network of friends and family.

If you are made redundant, the first thing to do is not panic and not view it as the end of the world.  Many say that the worst horrors of the global economic crisis are coming to an end, therefore, whilst it may take companies and even individuals a long time to recover, recovery will happen and things will turn around again on a global scale.  In the meantime, a redundancy can give you the chance to pursue a different career, a different path in life, or to just go and seek out a job with a nice company!

Having taken a deep breath, here are the five main things you should do to take back control if you’re living and working abroad and are made redundant: -

Step One – Find Out What Money You’re Entitled To

You employer may offer you a payout when they make you redundant – or they may not.  You need to look closely at the terms of your employment in the form of your contract and determine what you are entitled to.  If you are not in receipt of that which you are entitled to, you must speak to your employer.  If that doesn’t get you anywhere you may need to consider taking legal action.

You may be fortunate to be living in a country where there is state financial assistance for those who have been made redundant.  Sometimes such financial aid does not kick in for several weeks – go to the tax office or social security office equivalent and make enquiries about what support is available to you.

As an expatriate, if you’ve been employed by a British company abroad for example, you may possibly be able to claim on the British state system, what’s more, your employer’s contract with you will have to have been made according to British legal requirements – in which case there should be prescribed levels of payout available to you.

Of course all of this in itself is redundant if your company has made you redundant because they have gone bankrupt.  At which point it is time to look elsewhere for support.

Step Two – Look Closely at Insurance Policies

Some people take out income protection insurance that kicks in if their lose their job – if you have such insurance, or if such insurance is linked to your employment contract, your health insurance policy or even your life insurance policy, look closely and make some calls to see if you can make a claim.

Step Three – Begin to Budget Immediately

The day after you have been made redundant and have absorbed the initial shock, you and your family have to sit down and drawn up a tight and strict budget.  You may think that this is overkill, that you needn’t do anything so extreme straightaway perhaps.  However, if you take control of your finances immediately, you will find that anything you do have in the bank, any benefit or support you do get will go far further.  What’s more, the point of this exercise is reducing any additional pressure on you to the minimum.  Therefore, if you know that the money going out each month is only for the bare necessities, you will not feel as though you are losing financial control over everything.

If your family carry on living life normally when there is no, or limited income coming in, it won’t be long before your stress levels are as high as your debt levels.  Everyone has to take equal responsibility at such a time, and everyone has to be supportive towards you as you seek to find alternative employment.  The best way your family can do this is by not putting any additional stress on you at all – and stopping all but essential spending!

Step Four – Do Not Overlook Your Financial Priorities

Your financial priorities are your mortgage or rent, and your pension savings.  If you think you may have difficulty paying towards your accommodation you need to inform your mortgage company or landlord of your situation immediately.  It is far, far better to speak to these people before you get into debt with them as they may be open and willing to discuss ways you can rework your debt.

Perhaps your mortgage company will give you a payment holiday, perhaps they will allow you to pay interest only for a period, perhaps your landlord will allow you to sublet or move to another cheaper property with short notice.  Negotiate openly before you are forced to do so.

With regard to your pension, are you obligated to meet a certain financial savings limit each month?  If so, speak to your pension provider immediately to see what can be done.  If you had a works pension, what will happen to that now that you have been made redundant?  Speak to a financial adviser as soon as you possibly can to make sure that your savings to date are totally protected at this difficult time.

Step Five – Protect Yourself and Your Family

Do not leave yourself vulnerable at such a time.  Do not put off making critical decisions.  For example, if you live in Dubai on an employer sponsored visa and are made redundant, you have a month to get out of Dubai.  Do not hang about racking up debt that could land you in jail, (unpaid debt is a criminal offence as is a bounced cheque in the emirate), do not hang about thinking you will get another job.  Instead, start planning your exit if needs be. 

If you have the money in the bank and the right to remain in a country then carefully plan what you’re going to do and what is best for you and your family.  Whilst you may have to cut out luxuries in order to survive financially speaking, don’t cut out essentials such as health insurance premium payments or even life insurance premium payments.

You have to prioritise carefully at such a time, and in so doing you are taking control of your life and your situation and making sure you do everything right going forward.

Finally, we wish you good luck and every success in finding a new and better job abroad.