Unfair dismissal: what to do when you lose your job?

Unfair dismissal can take some workers by surprise and leave them not knowing what to do after leaving the company. Read the text and find out what to do!

Losing your job is a situation that can happen to anyone. 

Furthermore, unfair dismissal, which occurs when an employee is dismissed without any serious misconduct, can be difficult to deal with. 

But what do you do when you lose your job in this way? How do you act and what are the options available? 

In this article, we will address these issues and provide financial tips for using the funds received upon termination wisely. 

Continue reading and find out more! 

What is unfair dismissal?

Dismissal without just cause is a form of dismissal in which the employee is dismissed from the company without having committed any act that justifies the termination of the employment contract. 

In other words, it is a way of separating from an employee without there being a specific reason for doing so, which can occur at the initiative of either the employer or the employee. 

In this case, the employee is entitled to receive some severance pay as provided for in the Labor Laws.

How does it work?

When does the unfair dismissal, the employer must notify the employee in writing, informing them of the date of termination, as well as the amounts that will be paid upon termination. 

Generally, these amounts include the salary balance, advance notice, proportional thirteenth salary, proportional vacation with an additional one third, and the 40% fine on the FGTS balance. 

Depending on the salary and length of service, the worker can earn a high amount, leaving him dazzled.

Therefore, many people don't know what to do with this money and end up spending it unnecessarily.

To avoid this problem, we have put together some financial tips to help you use your severance pay wisely. 

Financial tips for using severance pay wisely

When we receive a unfair dismissal, we are overcome by a mixture of feelings, and for a long time, we feel insecure. 

These sensations and feelings are absolutely normal, so it is very important to learn how to deal with them, stay calm and be more rational at this time.

Mainly because we need to be wise in using the financial resources that come from this dismissal. It will be our safe haven until we find another job.

After receiving your employment contract termination notice, it is important to think about the best way to use this money, of course.

Check out some tips for dealing with these resources in a conscious and intelligent way.

1. Make a financial reserve

One of the first steps to take is to create a financial reserve. 

This reserve should be enough to cover expenses for at least 3 months, ensuring that you have enough time to find a new job and stabilize financially.

You can, for example, invest this money or leave it in a digital account with a balance yield.

This way, you will redeem the amount with added interest. 

If you find a job in the meantime, you should keep that money in your emergency fund and increase it to 6 months.

It is worth noting that the money from this reserve must be invested in an investment with daily liquidity, which allows withdrawal at any time.

2. Review your budget

After the dismissal without just cause, Another important financial measure is to review your budget. 

In this review, you should analyze which expenses can be cut or reduced. 

Identify expenses that are essential and avoid unnecessary spending until your financial situation is more stable.

Remember, just because you have these financial resources doesn't mean you should increase your standard of living.

It's not an endless source of money, and it won't drip for quite some time either.

So, save and control your expenses until you find a new source of income.

3. Look for new opportunities

Some people choose to take a break after leaving work, and in fact, this is a good thing and there is nothing wrong with it. 

However, it must have an end date and ideally it should not remain inactive for too long after being fired.

Take a few days to rest, sort out the paperwork for your dismissal, recharge your batteries, but then look for new job opportunities.

Update your CV, register on job sites, network and participate in events (even online) related to your field of expertise.

Don't be discouraged by obstacles and stay motivated.

It is important to keep in mind that the process of finding a new job can take time.

That's why it's important to do it right away. You can look for a new job and continue to rest until you get an interview.

Don't wait until 2 or 1 month before your unemployment insurance expires to look for a new one. In addition to being risky, it can affect your finances.

4. Invest in training

Take advantage of this period to qualify yourself and seek new knowledge. 

Invest in courses and training that can be a way to stand out in the market and increase your chances of getting a new job.

When we have a permanent job, we end up closing ourselves off in that world and not updating ourselves.

However, the world out there never stops changing and evolving, even selection processes change.

So when we get a unfair dismissal and we need to find a new job, we realize that we are totally out of date.

From then on, the rush to update ourselves and gain knowledge begins, otherwise, we will not be able to stand out among the other candidates.

Therefore, take advantage of this free time to invest in training, increase your knowledge and keep up to date with new trends in the job market. 

5. Invest in your own business

Starting your own business can be a great way to leverage that money to create a brighter future. 

Here are some reasons why this is an option worth considering: 

✅Initial capital

Termination can provide the seed capital needed to start your business. 

Use this money to invest in the structure, equipment, inventory, marketing and other essential aspects of your business. 

Having a good financial start can help support your business from the beginning.

✅Freedom and independence

By investing in your own business, you will be building a path to financial freedom and independence. 

You will no longer be dependent on an employer to sustain your income, as you will be in control of your own source of income. 

This means you will be able to set your own goals, work schedules and make important decisions that will directly affect your business.

✅Passion and personal fulfillment

Starting your own business allows you to follow your passion and do what you truly love. 

By investing your severance pay into a business that matches your interests and skills, you will have the opportunity to find satisfaction and personal fulfillment at work. 

This can bring a greater sense of purpose and happiness to your professional life.

✅Growth and profit potential

By investing in your own company, you will be opening doors to potential growth and profit. 

As your business thrives, you can expand your operations, hire employees, attract more customers, and increase your profits. 

This can lead to long-term financial improvement and the creation of solid wealth.

Remember that investing in your own business involves risks and challenges, so it is important to conduct careful research, create a solid business plan and seek guidance from experts in the field. 

With the right combination of dedication, passion and effective management, your investment can become a lasting success.

Conclusion

A unfair dismissal can be a difficult and uncomfortable situation. 

However, with planning, organization and, above all, wisdom in using the resources received upon termination, it is possible to overcome this situation and find new opportunities in the job market. 

So, put our tips into practice and use this money consciously and intelligently. 

Unfortunately, the unemployment rate in Brazil is high and finding a new job can be time-consuming and challenging.

Therefore, it is very important to protect yourself against financial crises that are common when we are unemployed.

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