Getting Laid Off vs Getting Fired
Getting Laid Off vs Getting Fired From A Job. Being laid off and being fired are separate types of dismissals from a company. An employee may be fired for poor job performance, inappropriate conduct or behavior, a violation of company standards or rules, not meeting her contractual terms of employment, and other reasons. Essentially, a firing occurs because of something the employee did wrong.
Being laid off means you have lost your job due to changes that the company has decided to make on its end. Have you recently lost your job? This may leave you feeling like your career path is suddenly a dead-end road. If so, you aren’t alone. Many professionals have experienced career loss, such as being fired, laid off.
What Does Being Laid Off Mean?
Being laid off refers to a temporary or permanent termination of work contract by an employee because of reasons relating to the business. A company may suspend just one worker or a group of workers at the same time.
Laid-off employees are generally entitled to a number of benefits that employees who are fired are not. For example, an employee who must leave because of a layoff is often entitled to severance pay as well as unemployment.
Layoff scenarios: Different situations of Laid Off
Layoffs occur in several different contexts and situations. Some of the scenarios include:
- Mergers and acquisitions: when one company acquires another and there is a functional overlap in employers and duties.
- Company shuttering: the business closes and ceases operations.
- Downsizing: a company determines it needs to reduce personnel, usually because of the cost.
- Recessions or a loss of revenue (like what’s happening with the global pandemic): in this usually uncommon instance, a company loses business and needs to cut losses, which includes personnel costs.
- Redundancies: multiple personnel are performing the same duties or tasks.
- Restructuring: a company is significantly changing the way it performs its operations, usually for the sake of efficiency or market demands, and no longer needs the job functions of the employee.
What is the difference between getting laid off and getting fired?
Layoffs usually aren’t related to the employee’s performance or conduct. Layoffs occur because the company is eliminating the employee’s position due to any one of a number of factors, such as restructuring, mergers, or the closure of the business.
If an employee lost his job because the company was trying to cut down on costs, then he can explain the situation to his future employers. On the other hand, if an individual lost his job because of unsatisfactory performance, then future employers won’t be so willing to give him a position.
What Does Being Fired Mean?
The difference between being laid off and fired is who is at fault. Being fired means you are terminated from your job due to something that the company deems was your fault. If you are laid off, that means the company deems that they are at fault. For example, a professional could be fired for habitual tardiness, stealing or other types of negative behavior.
If you have been fired, you should make sure that you are provided the reason for termination in writing. This is important if you feel that you have been wrongly terminated. It’s also important to speak to your human resources department about important things such as your final payment and severance pay.
Keep in mind that severance payterms vary by organization, so make sure to do your due diligence and find out what you qualify for. You may even be able to negotiate your severance pay based on how long you have been with the company. Unfortunately, if you have been fired you most likely will not qualify for unemployment.
What are alternatives to Layoffs?
Consider a virtual office
Another way to cut down on costs is to keep only the most important staff onsite and send the rest of the workers home to work remotely. Thanks to modern software, the company owner will still be able to manage his employees remotely by conducting video conferences.
Encouraging voluntary retirement
If a company needs to reduce its workforce, why not just ask who wants to step down voluntarily? For example, the owner can offer older workers a retirement package as an incentive. A voluntary retirement program enables individuals to transition to retirement smoothly.
Offer more unpaid time off
A company owner can also save money by offering more unpaid time off rather than eliminating workers’ positions. For example, he can ask his employees to skip work on Fridays or offer them an additional two weeks of vacation during the summer season.
Cut back on the extras
If a company is laying off workers to reduce costs, it can look for other avenues of saving money. For example, the company managers can freeze additional hiring, reduce or remove bonuses and raises, and eliminate unnecessary travel. They can also postpone upgrades on non-vital equipment.
What’s Next After Being Laid Off or Fired?
There are a variety of benefit and aid programs to help you if you lost your job. Below you will get a list of what to do after losing your job or got fired. How you can Apply for Unemployment Benefits.
- Establish the nature of the termination: If the reason for letting go of an employee is not clear, then the affected person should seek clarification on the matter. The nature of one’s termination affects his eligibility to secure jobs with future companies.
- Check on the severance package: Severance package refers to the compensation and benefits that employees receive once they leave employment at a particular company unwillingly.
- Get references: Whether one was fired or laid off, he or she should always request for a letter of recommendation, particularly if they were let go because of company layoffs
- Collect final paycheck: Before leaving the workplace, an employee who loses his job should inquire about his last paycheck. The individual should find out the when and how his last payment will be made.
- File for unemployment benefits: If a worker is laid off because of the company’s fault, he is eligible to apply for unemployment benefits. To receive the benefits, he should first register for unemployment either online, over the phone, or in some states, by mailing a form.
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