10 Things to Do If You Are Laid Off

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Whether or not you expect it, a layoff is traumatizing. Through no fault of your own, one minute you’re employed—and the next minute you’re signing up for unemployment. Besides the emotional devastation, there’s the financial hit you’re about to take.

How do you deal with a layoff? Here are 10 things you can do to ensure your financial house is in order and you can move forward if you are laid off.

1) Request a Layoff Letter and Recommendation

There’s a difference between being fired and being laid off. A reduction in the workforce for whatever reason is outside an employee’s control. That’s an important distinction when you go to an interview for another job. You'll want a letter from the HR department clearly stating the circumstances to your layoff.

Read the letter. It should talk about the positive contributions you made. If any details are incorrect, ask for the letter to be rewritten. The letter stands as proof that you were not fired but a victim of a workforce reduction.

While you’re at it, ask for a letter of recommendation or referral from your manager or HR department. This will go a long way in future job interviews.

2) Ask About Severance Pay

Your company may have a severance package for you. But ask if there’s any wiggle room in it. Try to negotiate more. Consider consulting with a labor attorney if your package is below industry standards.

3) Check on Health Insurance

Inquire how long your company’s health insurance will cover you once you walk out that door. Since most employers pay premiums a month ahead, if you are laid off at the beginning of a month, you should have coverage for the rest of the month. But check to make sure.

If you’re negotiating a severance package, see if health benefits can be a part of it.

Finally, your company is required to offer you COBRA, which allows you to purchase your family plan for up to 18 months.

4) Collect Last Paycheck

Make sure your last paycheck is the right amount. Double-check that all the deductions are in order. Check on your unused vacation or sick days. Are those paid days reflected in your last paycheck? Should they be?

Sometimes, if it’s a mass layoff, the final paycheck may be 60 days away. The federal Worker Adjustment and Retraining Notification Act requires employers to give 60 days’ notice. During this period, all wages and benefits must be paid.

5) Evaluate 401(k) Plan or Pension Plan

You'll need to decide whether you want to temporarily leave your 401(k) with your ex-employers plan or roll it over to an IRA. You could also wait and roll it into your new employer’s plan if they have one. The third choice is to take the penalties and tax hit and cash it out.

If your ex-employer has a pension plan and you’re vested, what you decide to do with it might be affected by your age. Talk to a financial advisor to determine your next move.

6) File for Unemployment Benefits

You worked hard, and one of the perks of working is unemployment benefits when you need them. This is not the time to be proud. These are benefits that you are entitled to. The funds they provide will take some pressure off your savings.

Although the benefits will often last up to 26 weeks, the length depends on where you live.

7) Update Resume

Now’s the time to dust off that resume. If you haven’t looked for a job in a while, it’ll probably need a lot of updating. Think about all the jobs or promotions you held with your ex-employer. Write down the highlights of what you did and provide context in your resume.

For example, don’t just state you held the position; let the prospective employer know what the position was; what it meant to the company. If you increased sales, state by how much, and if you cut expenses, let them know that as well. In other words, detail what shows you off.

And try to keep your resume to one page.

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8) Assess Your Life

What do you want to do next? Decide if you want the same kind of job or if you want to take the opportunity to mix it up. Then, look over that resume and see if something pops out that you used to do or that could lead you to do something new.

Decide what your new priorities are, if you have any. For example, do you want to work for a large corporation, or does something smaller sound better?

How important is free time versus work time? Do adjustments need to be made? Have your life circumstances changed? Do you prefer to work remote? These answers will affect your job search.

9) Don’t Keep It a Secret

Don’t lay low. Now is not the time to keep your layoff to yourself. It’s the time to let people know that you’re available. Go online and have personal business cards made. Then you can start networking. By handing your card out, you make it easier for people to pass your name on to others.

The more people know that you’re available, the more likely the right potential employer will hear about you.

10) Time to Surf the Web

Be proactive, sit down at your computer and delve into websites like Indeed or Glassdoor. These sites have hundreds of jobs advertised. Many of them fall under your expertise. And, fortunately, these sites have filters that help with the search.

Remember social media. LinkedIn is a great source when looking for a job.

Meanwhile, Take a Breath—You Were Not Fired

A layoff is the company’s fault, not yours. So mourn the loss of your career briefly, but don’t feel you could have done something to stop it.

Before you leave the company, make sure you receive everything you deserve. Assess what you want next. Then start the job search by networking and revitalizing your resume.

The Epoch Times Copyright © 2022 The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.