The Silent Crisis: 5 Financial Moves You Must Make NOW Before a Layoff Strikes Your Doorstep

Ever wondered how nearly half of Irish households manage to keep their financial heads above water for less than three months without an income? It’s a sobering reality that many of us dread facing—especially when whispers of layoffs start echoing down the office halls. I get it; job insecurity isn’t just a headline—it’s a knot in your stomach, a nagging question that won’t quit: “What on earth should I do with my money if the axe falls?” Now’s the time to flip that script. By taking smart, proactive steps, you can turn uncertainty into opportunity, protect your hard-earned savings, and steer your future with confidence. So, before the storm hits, let’s break down how to prepare financially for a layoff, ensuring you’re not just surviving—but thriving—when the unexpected knocks. LEARN MORE

With CSO stats showing that almost half of Irish households can’t last 3 months with income, Adriana Cruz looks at preparing for a layoff

Job insecurity is a reality many of us face at some point in our working lives. Whether it’s rumours of restructuring or signs of economic slowdown, the thought of being laid off can cause real financial anxiety. 

If your company has already started cutting roles and you’re worried you could be next, it’s natural to start asking, “What should I do with my finances?” Taking a few proactive steps now can go a long way in protecting your financial well-being and giving you more control during uncertain times.

Your First Steps After a Layoff

Losing your job can feel overwhelming, but taking the proper first steps can protect your rights, clarify your next move, and give you a sense of control.

Here’s what to do immediately after being laid off:

Get It in Writing

Ask HR for a formal letter stating that you were laid off. This document is essential for:

• Applying for Jobseeker’s Benefit
• Proving you didn’t leave voluntarily (which can impact benefits)
• Future job applications

Clarify Your Entitlements

Here are key questions to ask your employer:

• When is my last working day?
• Will I receive pay for unused annual leave?
• What happens to any bonuses or commissions I’m owed?
• Am I entitled to a severance package?
  If they offer severance, don’t be afraid to negotiate — especially if you’ve been with the company a long time or if redundancies are being handled inconsistently.
• What about my health insurance or employee benefits?
  If you have private health insurance through your work, ask how long it will remain active and whether you can continue it on your own.

Financial Planning is Key

When you suspect a layoff might be coming, it’s vital to get ahead by organising your finances. This means knowing exactly how much money you have, what your regular expenses are, and how long your savings could support you. 

Start by reviewing your budget, cutting unnecessary spending, and making a plan to stretch your income as far as possible. It’s also a good time to check if you’re eligible for any government support.

Taking these simple steps now can help reduce stress and give you more control during challenging times.

Here’s a step-by-step guide to help you prepare financially if you think a layoff might be on the horizon.

Review Your Finances – Know Your Numbers

Before anything else, take the time to review your financial situation. Start by listing your essential monthly expenses, such as rent or mortgage payments, groceries, utilities, and transport. 

Then, look at any debts you’re repaying and how much you owe each month. Check your savings too — ask yourself how many months you could manage without a regular income.

If you don’t already have a budget, now is the time to create one. It doesn’t have to be complicated — a simple spreadsheet or a free budgeting app can help you track your income, spending, and savings. Having a clear budget gives you better control over your money and enables you to make more confident decisions.

To make it easier, we offer a free personal budget planner you can use to get started — simple, practical, and designed to help you stay on top of your finances.

Boost Your Emergency Fund

An emergency fund is your financial safety net — ideally, it should cover 3 to 6 months of essential living expenses. If your savings are a bit low, now’s a good time to focus on building them up. 

Start by cutting back on non-essential spending where you can. Any extra income — like bonuses, tax refunds, or side earnings — can be redirected straight into your savings.

It also helps to keep this money in a separate account so you’re not tempted to dip into it for everyday costs. Even small, consistent contributions can make a big difference over time.

Understand Your Redundancy Rights in Ireland

If you’re made redundant in Ireland, it’s important to know your rights and entitlements. You may qualify for a Statutory Redundancy Payment, provided you meet specific criteria, such as having been with your employer for at least two years. In some cases, employers also offer Ex Gratia payments — these are voluntary top-ups in addition to the statutory amount. 

You could also be eligible for unemployment benefits, such as Jobseeker’s Benefit or Jobseeker’s Allowance.

If you’ve recently faced redundancy, or you’re expecting it, make sure you understand how any lump sum payments will be taxed and what reliefs may apply.

In many cases, part of your redundancy payment can be tax-free, mainly if it includes a basic exemption or an increased exemption for long service.

Whether you’ve already received an offer or are just preparing for the possibility, educating yourself on your options will help you make informed decisions and protect your financial future.