If you’ve recently been laid off, it’s important to take steps to protect yourself and your financial well-being. Here are some steps you should consider taking:
Steps to take after being part of layoff
Review your health insurance coverage: If you received health insurance through your job, you may be able to continue your coverage through COBRA as a laid off employee. COBRA, an unemployment insurance benefit, is a federal law that allows you to continue your employer-sponsored health insurance for a limited time after you lose your job. You’ll have to pay the full premium yourself, but it can be a good option if you don’t have any other coverage.
Check your severance package: If you received a severance package from your former employer at termination of employment, carefully review the terms and conditions to understand what benefits you are entitled to. This may include things like health insurance, unemployment benefits, or outplacement services.
File for unemployment benefits: If you’re eligible, file for unemployment benefits as soon as possible. Unemployment benefits can provide temporary income while you look for a new employer.
Create a budget: It’s important to carefully manage your expenses while you’re looking for reemployment or if you want to take time off. Create a budget to help you understand how much money you have coming in and going out, and make any necessary adjustments to reduce your expenses.
Update your resume and start job searching: Take the time to update your resume on LinkedIn and start looking for a new job. Consider reaching out to your professional network and utilizing online job boards and career resources.
What does it mean to be laid off?
Being laid off means that an employee is no longer employed by the company, usually due to financial reasons such as the company experiencing financial declines, downsizing, or restructuring. If you are laid off, you’re typically not at at fault for the termination of employment, and you may be entitled to unemployment benefits, depending on the laws in your jurisdiction and the circumstances of your layoff. It is important to note that being a laid off worker is different from being fired, which means that an employee is terminated for cause, such as poor performance or misconduct.
What’s the difference between being laid off, furloughed, and being fired?
Being laid off, furloughed, and being fired are all different circumstances that can occur when you lose your job. Here’s how they differ:
- Laid off: Losing your job due to a layoff usually means that the company is downsizing or restructuring and has eliminated your position. Layoffs can be temporary or permanent, and they may affect one person or a group of co-workers.
- Furloughed: When you are furloughed, your employer temporarily reduces or suspends your work hours or pay. Furloughs are often implemented as a cost-cutting measure when a company is facing financial challenges. Furloughed employees may be eligible for unemployment benefits.
- Fired: Being fired means that you have been terminated from your job for a specific reason, such as poor performance, violation of company policies, or misconduct. Being fired is usually considered a permanent separation from the company.
It’s important to understand the difference between these circumstances, as they can have different implications for your benefits and unemployment eligibility such as healthcare. If you have any questions about your job loss, it’s a good idea to speak with a human resources representative or reach out to the U.S. department of labor.
What is unemployment insurance?
Unemployment insurance (UI) is a government-funded program that provides temporary financial assistance to workers who have lost their jobs through no fault of their own. UI helps workers bridge the gap between jobs by providing a weekly benefit to help cover their basic living expenses while they are looking for new employment.
How do I claim unemployment after being laid off?
If you have been laid off and are seeking unemployment benefits, you will need to file a claim with your state’s unemployment insurance agency. If you are approved for unemployment benefits, you will receive a notice explaining how much you are eligible to receive and how to access your benefits. If your claim is denied, you may have the option to appeal the decision. It’s a good idea to carefully review the terms and conditions of your state’s unemployment insurance program and follow all instructions provided by the agency.
Will I receive severance pay when I have been laid off?
Whether or not you will receive severance pay when you are laid off depends on the terms of your employment and the policies of your employer. Some employers offer severance packages to workers who are laid off as a way to provide financial support during the transition to a new job. Severance packages can vary widely and may include a variety of benefits, such as a lump sum payment, continuation of health insurance coverage, outplacement services, and unemployment benefits for a certain length of time. Severance pay is usually based on the length of your employment and your position within the company.
Are there laid-off benefits?
If you meet the eligibility requirements of your state’s unemployment insurance program, you may be able to receive temporary financial assistance to help cover your basic living expenses while you are looking for a new job. It’s important to carefully review the terms of any benefits offered to you by your employer and understand your options.
Small business layoffs
[3 bulleted pieces of advice for dealing with it from the owner and employee’s perspective]
If you are a small business owner facing the decision to lay off employees, or if you are an employee who has been laid off from a small business, it can be a difficult and stressful situation. Here are a few pieces of advice for dealing with small business layoffs:
For small business owners:
- Communicate openly and honestly with your employees: It’s important to be transparent and upfront with your employees about the reasons for the layoffs and the steps you are taking to address the situation.
- For employees who have been laid off:
- Review your options: Take the time to review your options and understand what benefits you may be entitled to, such as unemployment benefits or continuation of health insurance coverage and see what the possibilities are for a rehire.
Common Reasons For a Mass Layoff
[bulleted list talking about recessions, pandemics, redundancy, mergers, downsizing, restructuring, and company closing]
There are several common reasons for a mass layoff, which is defined as a significant reduction in the workforce at a company or organization. Here are a few potential reasons for a mass layoff:
- Recessions: Economic downturns or recessions can lead to a decrease in demand for a company’s products or services, resulting in a mass layoff.
- Pandemics: A global health crisis, such as the COVID-19 pandemic, can lead to a mass layoff due to decreased demand, supply chain disruptions, and other economic factors.
- Redundancy: When a company introduces new technologies or processes that make certain jobs obsolete, it may result in a mass layoff of workers whose positions have become redundant.
- Mergers: When two companies merge, there may be overlap in certain positions, leading to a mass layoff of employees in those positions.
- Downsizing: Companies may engage in downsizing, which is the process of reducing the size of the workforce, in order to cut costs or improve efficiency.
- Restructuring: Companies may undergo restructuring, which involves making significant changes to the way the company is organized, in order to improve performance or respond to changing market conditions. This can result in a workforce reduction of employees.
- Company closing: In some cases, a company may decide to close its doors permanently, resulting in a permanent termination of all employees.