Unemployment is an inevitable phase in every working professional's life. For many, being fired or furloughed can cause a lot of anxiety and fear. However, there are ways to recover from it and reshape your career.
In this article, we’ll see the differences between being fired, laid off, and furloughed. We'll also discuss what to do in each circumstance. Knowing the differences between each scenario can help you tackle them better if you ever find yourself in one.
What Does It Mean to Be Fired?
Being fired means the company has decided to terminate your employment due to something they think is your fault. Perhaps due to poor performance, workplace theft, inappropriate behavior, starting conflicts, absenteeism, workplace harassment, etc.
Here's what to do after being fired:
1. Inquire the Reason for Your Termination
The most common reasons for being fired are poor performance and violation of company policies. However, sometimes the reasons might not always be apparent. In that case, it's better to ask your employer why exactly you’re being fired than to jump to conclusions.
Knowing the reasons can give you a clear idea of what you need to improve on. It also helps when you’re interviewing for jobs. If you think you were terminated for unfair reasons such as discrimination or whistleblowing, you can contact your attorney if you decide to take action.
If you feel that you're being fired out of a mere misunderstanding, it's a good idea to talk to your HR manager first. Try to resolve the issue professionally (ideally in a face-to-face meeting) and remember not to react out of impulse. Explain your intent and be understanding of the manager's obligations as a company representative.
2. Take Time to Introspect, Grieve, and Learn
Losing your job can be difficult to process, especially if you weren't expecting it. Spending time with your loved ones and practicing mindfulness can help you during this time. Once you feel better, you may consider learning new skills or refining old ones to increase your employability.
3. Cold Email Desirable Companies
After updating your resume and reassessing your priorities, start looking for jobs once again. Alongside job portals, you can also try to cold-email or direct message companies on social media that you always wanted to work for.
What Does It Mean to Be Laid Off?
If you’re laid off, you are terminated from employment because of the changes the company decided to make on its end. Companies tend to lay off their employees when they’re downsizing, running low on finance, merging, going out of business, etc.
Contrary to being fired, if you are laid off, the termination is due to the company’s actions and not because the management thinks you did something wrong. That's why they are more likely to be sympathetic towards you and agree to your requests.
Here's what to do after being laid off:
1. Request a Layoff Letter
Before you leave, ask your HR to provide a layoff letter. A layoff letter explains why you were terminated and confirms that you were not responsible for it. When you receive it, make sure it includes all the necessary elements. If you notice any omissions, don't be afraid to request revisions.
2. Ask for a LinkedIn Recommendation
There’s a good chance that the management will agree if you ask for a recommendation after being laid off because they know you are not at fault. Recommendations can greatly increase your chances of being hired and make your LinkedIn profile stand out.
While you’re at it, don't forget to update your profile on LinkedIn and make sure to use the #OpenToWork feature to increase your probability of getting noticed by recruiters.
3. File for Unemployment and Negotiate Severance Pay
If you're struggling to make ends meet after being fired, check if you're eligible for unemployment benefits. You can also inquire with the HR manager if your company offers severance pay to laid-off employees. You might even be able to negotiate a good package.
What Does It Mean to Be Furloughed?
When you are furloughed, you’re still technically an employee of the company, but you neither work nor get paid. Employees are furloughed when the company is unable to pay them or when there isn't enough work. Put simply, a furlough is a temporary layoff. Despite not getting a salary, a furloughed employee might still be eligible for unemployment insurance benefits.
Here's what to do after being furloughed:
1. Find Freelance Gigs
Without a steady paycheck, it might get difficult to pay bills and manage daily expenses. To counter this, you can try working on a contractual basis until your employer is ready to get you onboard again. Search job websites to find remote work and new freelance gigs.
2. Consider Resigning and Looking for Better Jobs
Being loyal to your company and waiting for the crisis to pass is commendable. But if your financial situation doesn't permit this, you may need to quit your job for good and start looking for better and more stable opportunities.
Ideally, you'd want to work in a company that's capable enough to not have to lay off its staff in times of crisis. Perhaps it's a question you can ask in your next job interview to a prospective employer.
Plan Ahead Before Making Your Next Move
No matter if you were fired, laid off, or furloughed, it’s necessary to take time to process the situation. This time-off can help you reevaluate your needs and strategize your next moves.
Before you leave your workplace, make sure you’ve taken care of all the paperwork. Do file for any benefits you might be eligible for. Continue looking for better jobs or stepping into a new industry, and be sure to learn new skills to increase your employability.