Fired. Laid off. Let go. Downsized. Right-sized. These are all euphemisms for unemployment. No matter what you call it, it means you’re out of a job.
What’s important to remember is that you can be great at your job and still lose it. The economy, changes in the industry, mergers and acquisitions — all of these can affect your job. Even if you were fired because of something you did (or didn’t do), this moment doesn’t have to define your career.
In the first quarter of 2013, there were a total of 154,374 “separations,” according to the U.S. Bureau of Labor Statistics (BLS). It defines “separations” as employees “separated from the payroll” during a specified period. This includes employees who left voluntarily (quit) as well as layoffs and discharges, retirements, transfers, deaths, or separations due to employee disability. With workers changing jobs an average of every five years (according to the BLS), it’s not unusual for some of those changes to come from layoffs or being fired.
“You’re Fired”
Generally, you’ll be told of your termination in a face-to-face meeting. The meeting might be led by your boss, or it could be someone from human resources, depending on the size of the company.
In your dismissal meeting, you will likely be given information about any benefits you will receive. For example, you may receive a severance package — although you aren’t guaranteed it, unless your employment contract specifies it.
What to ask for:
== Decide on whether you want to resign, or get fired. This may seem like an odd issue, but there are circumstances when you may wish to resign instead of being fired. If you are fired, you may be eligible for unemployment compensation, benefits, and severance pay. However, you may choose to resign rather than have the stigma of “getting fired” on your record.
== Inquire about severance and outplacement assistance. Now is the time to negotiate, but don’t be pressured to sign anything if you’re not ready. Some employers won’t release your final paycheck until you sign a release, but that doesn’t mean you need to sign anything right away. Find out what’s available to you.
== Ask how reference checks will be handled. What will a prospective employer be told if they contact the company? Will your supervisor provide you with a letter of recommendation? Can he or she take calls for reference checks, or are those handled through the HR department? What information will be released to the prospective employer?
== Find out about your benefits. You may be entitled to accrued vacation, overtime, and/or sick pay. Ask about these benefits, and how they will be paid out.
== The company should provide you with information about continuing your health insurance coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA) law.
== Ask for information on transferring your retirement account with the company, if you have one.
== Find out how — and when — you will receive your final paycheck from the company.
In most cases, you’ll be asked to leave the building immediately, and will be escorted off the premises (especially in mid-size or larger companies). You may not get a chance to pack up your personal belongings yourself, or even say good-bye to your colleagues. If you are missing items or need access to information after you’re let go, contact the HR office and/or your supervisor for resolution.
It can be difficult to do, but try to leave on good terms. You may end up back at that company again at some point, or working with the same people in a future job. Plus, your future employer may contact the company for a reference and/or you may want a recommendation from your most recent supervisor.
First Things First
The shock of losing your job can be overwhelming. However, the decisions you make during this time are crucial to making a successful transition to a new position.
One of the first things to do after being fired is to check into unemployment insurance benefits. If you are fired from a job, you are generally eligible for unemployment compensation unless your employer proves you left your job voluntarily (you quit or resigned), or you were discharged for misconduct. (And there is an appeals process even if your employer initially makes this claim.)
As of January 2013, regular unemployment insurance benefits — in most states — run for 26 weeks (plus one unpaid “waiting week”). For people who have not yet found a job within that time frame, Emergency Unemployment Compensation (EUC) and Extended Benefits (EB) offer additional compensation. Each of these programs has a different deadline. Consequently, the number of weeks you are eligible for will depend on when you filed your original claim.
The permanent Extended Benefits (EB) program typically provides an additional 13 or 20 weeks of compensation to the unemployed who have exhausted their regular benefits in states where the unemployment situation has worsened dramatically.
Your unemployment payment depends on your weekly earnings prior to being laid off, and the maximum amount of unemployment benefits available (this will vary by state). Unemployment benefits typically replace about half of your previous earnings, subject to a maximum benefit level. The maximum state-provided weekly benefit in 2012 ranged from $235 in Mississippi to $653 ($979 with dependents) in Massachusetts. (Some states offer higher benefits to jobseekers with dependents.) Because the benefit is subject to a cap, unemployment insurance benefits replace a smaller share of previous earnings for higher-wage workers than for lower-wage workers.
The average unemployment benefit was about $300 per week in 2010, 2011, and 2012.
Check and see if your state offers an unemployment benefits calculator. (A simple Google search can identify if one is available.) There are two types of unemployment calculators — one that tells you how much money you are entitled to collect, and another which tells you how many weeks you are eligible to collect unemployment.
You may be eligible for unemployment benefits if:
• Your job was eliminated
• Your employer fired you because you could not meet their performance or production standards, or their qualifications for the position
• You lost your job due to lack of work
• There was an involuntary reduction in force
• Your temporary or seasonable employment position ended
• The company downsized or shut down
• The company restructured or reorganized
You may not be eligible for benefits if:
• You were fired because you violated a company policy, rule, or procedure (including absenteeism or insubordination)
• You quit your job without good cause
• You are out of work because of a work stoppage (except for lockouts) that violated an existing collective bargaining agreement where you worked
File your claim for unemployment benefits as soon as possible. If you wait, you may lose out on benefits.
Getting fired may also open a new door to self-employment. But if unemployment benefits require jobseekers to continue looking for traditional work full-time, someone pursuing self-employment may lose their unemployment benefits, because they are not “actively seeking work.” In 2012, the Middle Class Tax Relief and Job Act authorized $35 million in funds to encourage states to enhance and promote Self-Employment Assistance (SEA) programs. SEA entitles unemployed individuals to claim jobless benefits while simultaneously gaining access to small business development assistance. An individual with a “viable” business plan can continue to receive unemployment benefits as long as they are working full-time to get a new company off the ground. Under this program, individuals receive financial aid equal to their unemployment insurance benefits for a maximum of 26 weeks while they receive entrepreneurial training and other resources (including counseling and technical assistance) to help them launch a business. However, note that you are not eligible to receive extended unemployment benefits if you participate in the SEA program — you are limited to 26 weeks of payments. Check with your state’s Department of Labor to see if they offer a SEA program.
There are also retraining and job support services available through the federal government. The national system of local One-Stop Career Centers (established by the Workforce Investment Act of 1998) offers job search assistance, career counseling, job search workshops, labor market information, and other employment services. You may access many of these services for free. Some programs provide funds for transitional training to individuals unable to obtain or retain employment.
Some of these services are authorized through the Trade Adjustment Act (TAA) program to assist employees who lost their job due to international competition — for example, if their company shifted production or services offshore. TAA-eligible workers may also receive job retraining. The total period of unemployment benefits for a TAA-certified individual may last as long as 130 weeks.
The Workforce Investment Act of 1998 also authorized programs for job training and vocational rehabilitation. These programs are administered by each state, so check with your state’s Department of Labor office for eligibility and access. In some states, you may be receive one-on-one job counseling services (“intensive services”), including career testing, development of an individual employment plan, and group or individual counseling and career planning. These services can be accessed in addition to your work with a professional résumé writer. You may also be eligible to receive occupational skills training, private sector training programs, entrepreneurial training, adult education programs, and customized training, although some programs are only available to low-income individuals.
Take advantage of the programs available to you. Many of these are paid for through state and federal funds. This isn’t charity. These are programs paid by tax dollars, and the goal is to get you back working again.
DON’T WAIT TO START YOUR JOB SEARCH!
The longer you are unemployed, the harder it is to find a new job. Some jobseekers feel they need a “break” before starting the job search. However, taking a vacation is the last thing you should be doing.
If you lose your job unexpectedly (with little or no warning), it can be particularly difficult to move forward quickly with a new job search. You may still be mourning the loss of your old job.
It’s a cliché, but the old adage of a window opening when a door closes applies here. If you are completely honest with yourself, can you think of one or more positive things that may result from this? Are there things you want to do in your next job that weren’t available to you in your previous position? Is there something you’ve always wanted to pursue, but didn’t because you were comfortable in your old job?
Without a job to go to every day, your days may seem endless. It can be tempting to start working on some of those projects (either personal, or things around the house) that you’ve put off because you’ve been so busy with work. Don’t.
You need to get started on your job search right away. It’s easier to find a job when you have a job. Hiring managers instinctively wonder why you were let go, so if you can answer that question for them up front, it may help you land the interview. The longer you are out of work, the bigger this issue becomes. So don’t wait to start looking.
Even if you think you’re not ready to go back to work again, there are many things you can do in the early stages of the job search to move yourself forward before you are ready to actually start applying for jobs.
These may include:
• Updating your LinkedIn profile
• Applying for unemployment benefits
• Working with your resume writer to update your resume and cover letter
• Conducting informational interviews with people in your field to identify opportunities