- Granted, it sucks to be laid off.
- But at the same time, being laid off is a rite of passage.
- Most individuals in the working world will at some point go through a layoff.
- With that in mind, if you experience a layoff, follow these 5 must dos to protect yourself as best as possible.
Layoffs aren’t fun. With a layoff, you’re essentially being dismissed. A company is telling you you’re no longer needed or wanted, and that’s really all it comes down to. Pack your bags and get out.
Okay, well maybe your company isn’t as blunt or gruff as that. Maybe they profusely apologized for letting you, their trusted and much-loved employee, down in lieu of a need to restructure, cut back costs, or reduce the workforce.
Whatever the case, and however it is presented, no words or actions can mitigate – let alone change the true fact of the matter. You are now out of work. So what’s next?
Getting back on your feet is what’s next by first realizing you losing your job really isn’t the end of your world.
A Temporary Storm
The one silver lining about going through a layoff is the fact that many workers before you have been part of a similar situation; they too have lost their jobs.
What that means for you is there’s a ton of resources out there that can help you weather this temporary storm.
And that’s where you begin; you tell yourself, “This is only a temporary storm,” because now, especially in this tight job market, the chances are very good that you will find some sort of employment that might help alleviate the pressure of being laid off.
Or you might find an even better job.
If anything, the sky’s the limit for you at this point, which is a mantra you should repeat to yourself to prevent you from falling into depression should your job search not go as well as you hoped.
Again, the storm is only temporary, and the following five must dos are ways to help keep that storm temporary.
For the Most Part, the Best 5 Must Dos Should You be Laid Off
CNN recently featured what is potentially the five most comprehensive must dos for those who have been laid off.
The beauty of these must dos is they are simple, don’t involve a lot of time, thought or planning. But most importantly, they are very effective and timely for the suddenly unemployed. Those must dos are as follows:
1. Inquire about your pay – every last cent
Upon your termination from your job, make sure you ask about your pay – all of it. This includes your standard pay as well as time off pay and any additional money amounts you are owed.
Find out when you will receive your last paycheck, and make sure the entire amount is correct. If not, be sure to inquire as to when you will receive the rest, and with that, hold your (ex) employer to the date they give you.
Keep in mind that there is no federal law that requires unused vacation to be paid out at termination, and state laws differ. While many companies will pay you for accrued unused vacation days, others explicitly state they will not.
This is when you need to be vigilant and read up on your employee handbook to make certain of what your recourse is if you do not receive what you feel is the fair amount you are owed upon your termination.
2. Think twice before signing for your severance
As the CNN article states, upon your termination, be sure to not sign anything HR gives you until you’ve had a chance to examine what it is they want your signature for. Honestly, taking this approach shouldn’t be from a place of not trusting your employer, but more so to protect yourself.
This is not only because you will need to make sure you know exactly what you're signing, but also because you might be able to negotiate for more.
Being laid off can be an abrupt and shocking turn of events in your life, and with that, you will need to be calm and analytical of what is happening to you. As is suggested in the CNN article, being let go from a job can be as traumatic as losing a family member.
At that point, you’re vulnerable and in many cases the HR representative knows so, particularly as they thrust documents such as severance and nondisclosure agreements in from you which are designed to protect the company.
If you believe you’ve been wrongly terminated and plan to seek legal action against your ex-employer, yet if you sign a nondisclosure agreement (NDA) or a similar document, the company is acknowledged by you as having no liability toward you.
With that in mind, take a deep breath and take your time; it would be a huge mistake for you to sign something that legally prohibits you from pursuing what is gainfully yours, particularly when it comes to compensation or legal fairness.
Employment experts suggest that when you get a termination package, you should contact a lawyer if the package does not include everything you feel is fairly yours.
For instance, you might want to know what the reasoning is for the layoffs and review who is getting eliminated: Are all the workers over age 50 getting laid off? Were you told it was a "last in, first out" situation even though you've been at your place of work for over a decade?
Or if you believe you're being singled out due to race, age, sex or national origin, any potential discrimination claims can bolster negotiations for a better severance package.
Always ask for a copy of anything you signed to keep for your own records.
If the company isn't willing to budge on the numbers in the severance package, there are other types of compensation you can ask for, such as a letter of recommendation, outplacement services or a set period of time for how long your company email or voicemail will remain functional.
3. Look into unemployment
There is nothing wrong or socially unacceptable with receiving unemployment. Remember, part of your paycheck paid into unemployment, so why shouldn’t you get your cut if you’ve been laid off? And at any rate, if you were laid off without cause, you will likely qualify for unemployment insurance.
Sometimes, a company might ask an employee to resign during layoffs, which employees should avoid particularly if they feel their severance package has come up short of their expectations.
Depending on your state’s laws, resigning from a job while layoffs are eminent can adversely affect your unemployment benefits to the point where you’ll get no compensation at all.
In lieu of this you should also file for unemployment insurance. In fact, filing for unemployment should be the very first action you take after being let go as the process can take some time in which you will have absolutely no income whatsoever.
Just double check if your state allows you to receive unemployment insurance while you are also receiving severance pay as some states do not allow this.
4. Double check your health insurance
Ask how long your health insurance plan will remain in place. You're likely already covered through the end of the month at least, but then you need to find out what your continuity options are.
As the CNN article outlines, many companies try to cut off their health benefits the day they fire their employees. However, unless it's the last day of the month, that company should not halt your health insurance particularly as you probably paid your insurance fees through the month.
Some companies will offer extended health insurance along with severance pay. But if you are losing your health insurance, most employers have to send you a COBRA notice.
COBRA allows former employees to continue their health insurance plan for a set period of time, but they are required to pay 100% of the premium. Eligible employees can get up to 18 months of coverage. You can also shop for an individual health care plan on the state or federal exchanges.
5. 401 ways to not forget your savings
If you have a company sponsored 401(k), a few options exist as to what you can do with that money after you exit.
- You can roll the money into an IRA, which can offer more flexibility than a company plan.
- In many cases you can roll over the older 401(k) into your new employer's plan and keep all your savings in one place.
- You can also option to take out a cash distribution of your 401(k), though this not recommended as you will be hit with hefty penalties and tax consequences if you aren't of retirement age, which according to the federal government is 65 years or older.
Funds in a health savings account (HSA) are yours to keep after you leave the company, and you might be able to continue adding money to it after the layoff, as long as you have an HSA-eligible health plan.
A flexible spending account is another story. You can't use money in an FSA or contribute more after you've parted ways with your employer, but you might still be able to file a claim for whatever money is left in your account.
Many investment counselors and lawyers tend to shy away from ex-employees investing money through their ex-employer’s business.
After all, you have no idea how that business is doing financially, particularly now that you’re gone. And then again, there is the trust factor that has to make itself known.
Simply put, they terminated you, but you’re still sinking your hard-earned dollars into their investment programs. No, you’ll be much better off taking that money with you and investing someplace else that is not connected with the company that previously employed you.
In conclusion
There’s really no two ways about it; getting laid off is a jarring and unpleasant situation. The world at that point is uneasy and unsure, and to that end, you have to carefully think out what is best for you while going forward.
Just remember, this will be a temporary time in your work life, and once you do get that new (and hopefully better) job, the guilt and shame you’ve experience as the victim of a layoff will be an afterthought.
The one benefit is now you know what it’s like to be laid off and what you must do if that time comes again.
For more information, look into these articles:
- How To Clean Up Your Social Media For Your Job Search
- 15 Companies With Awesome Pay And Benefits
- 8 Strong Questions You Should Ask During A Job Interview
- Putting First Things First: Self-Assessment
- Long Term Objective – A Factor In All Your Job Search
