We are approaching the end of a tough, economically challenging year. Sometimes, along with the season for festivities come some other unwanted gifts – layoffs. Some industries (like banking, for example) will be more affected than others where upcoming mergers between giant entities mean the departure of thousands of staff whose jobs will have been made redundant. However, many companies have felt the pinch of reduced sales revenue, profitability or growth, and a belt-tightening exercise at your firm might affect you directly.

If this does happen, here are some steps that you can take to ensure that your financial health is least impacted during what will hopefully be a short transition while you look for a new job:

1. Withdraw all the cash from your accounts immediately. If your company fires you and informs your bank accordingly, you have the typical 28 days to “wind up” and leave the country. The bank may freeze your accounts until you provide a visa cancellation and proof of your departure. This may leave you stranded with no access to funds and no way to settle your obligations before you have to leave. It compounds a stressful situation and makes it untenable.

2. Prioritize your debts and liabilities. Things that come to mind immediately are credit cards, car loans, personal loans, and mortgage.

a. Obviously, if you have the ability, pay off your credit cards right away, and apply to close any unnecessary cards with the banks. Remember that most banks will have a 45 – 60 day moratorium before they will issue you a Clearance Letter. Many people don’t bother with this letter, but trust me when I say this – that letter is your right, and it is really important to ensure that your credit history stays unaffected as much as possible.

b. Put your car up for sale through multiple channels at the earliest opportunity. Don’t be greedy. If the amount offered meets your loan commitment, take the offer. Remember that the transfer process itself takes some time, and you want to leave yourself some time at the end. If things work out, and you find another job, you can always get another car. However, this is usually the one thing that people leave until the very end. As a result, they end up either selling the car at a throwaway price, or leaving it at the airport on the way out.

c. Personal loans are tricky, because they usually are multiples of salary, and therefore harder to repay at one shot. If you can, borrow from friends to settle what you can. Keep in mind that if you inform banks here that you have lost your job, some banks will be understanding, others not so much. They may try to place an exit ban on you, and your movements may be hampered as a result. Discuss this with a personal financial adviser to ensure that you do what is right for you.

d. A mortgage is the hardest one to tackle. While there are some mortgages that allow for suspension of payments for a certain period of time, and others that insure you against job loss etc., there is a real risk that you will lose your house (and your shirt!) if the market for the property is lower than the amount you actually owe on the house. Again, have a proactive discussion with a financial adviser so that there are no surprises should this unpleasant incidence occur.

3. Start being prudent with your spending. In this situation, every little bit counts. Resist the temptation to go out and get sloshed “because it will make you feel better”. Similarly, if you have vacation plans booked in advance – cancel them. You may not get all your money back, but you will get a large chunk of it for sure. That “credit” to your credit card balance will come in very handy - trust me. However, if there truly is no way to get the money back, knock yourself out. Enjoy.

4. Contact your kids’ school(s) and apprise them of your situation. If you are going to leave at the end of the term, inform them in writing so that they can get your school leaving certificates and other documents like report cards, letters of recommendation etc. ready in time. These things take time, so plan ahead and ask early.

5. Start networking like crazy on portals like LinkedIn, and even better, in person. Do not be shy – if people do not know that you have been laid off, they cannot help you. Those that don’t want to help you will not help you anyway.

6. Visit Al Etihad Credit Bureau and get your credit report before you leave. Whether you are returning to Ireland or India, they will ask for it. At that point, you will be running around begging friends in the UAE to help get your report for you, which is never fun.

Overall, losing your job in the UAE can be quite stressful. Although I hope it never happens to you, statistically speaking there is a probability that it will affect you or someone you know at some point. Taking the above steps can help mitigate some of that stress, and get you back on your feet with less financial issues to deal with when you do.

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While Omar does work for the Credit Bureau, the views mentioned above are entirely his own and do not reflect the views of the Bureau in any way, shape or form. If you like his writing style, please feel free to buy his very short but very interesting book on Branding, available here: http://bit.ly/BuildingBrandYOU



