Lose Your Job? Were You Fired, Laid Off, or Furloughed? Why it Matters

• Author: Jeffrey Simmons
• Posted: 2024-08-31

In this time of great economic upheaval over the last 18 months, countless numbers of Americans have lost their jobs. However, the reason for your job loss can have a detrimental effect on the options that you have open to you and the decisions that you should make going forward.

Here are a few of the key differences between being fired, laid off, or furloughed.

Being Fired

Being fired means that you were at fault for the loss of your job. Regardless of whether or not you believe you are at fault, it is your employer who makes this decision. Common reasons for termination include theft or other negative or illegal behaviors, habitual lateness, and the inability to perform the functions of the job to standard.

If you have been fired from a job, the first thing that you need to do is to understand the reason for the termination. Getting this in writing is vital if you suspect that you have been wrongly fired from the job. You want to keep a paper trail of all communication between yourself and your employer from this point forward.

You should also schedule an appointment with your human resources department immediately. This meeting should answer questions about the timing of your final paycheck and if you will qualify for any type of severance payment.

It is important to understand that you will not likely qualify for unemployment immediately if you have been fired from a job.

While it may be tempting to speak poorly of your employer after such a traumatic event, it is never a good idea to throw any organization or person under the bus. You never know how this negative talk will reflect on you as a professional. As such, it is a better idea to take the high road. If you cannot say something nice, simply refrain from saying anything at all.

Being Laid Off

Conversely, being laid off means that you lost your job as a result of a decision or changes made by your company. While being fired means that the company blames you for the termination, being laid off does not mean that you did anything wrong as an employee.

During the ongoing COVID-19 pandemic, millions of Americans were laid off from their jobs as companies struggled to stay afloat during the shutdown. Other reasons for being laid off include an organization making the decision to restructure its workforce, downsizing, and other decisions that affect how many employees are needed.

Once you receive word that you are being laid off, you need to meet with the human resources department and gather all of the necessary exit paperwork. Now is the time to discuss any type of severance pay. Your human resources staff will also be able to walk you through the process of filing for unemployment.

Now is the time to ask for a letter of recommendation from a manager. This will help to put you in a better position to get another job as quickly as possible. A letter of recommendation also demonstrates to potential employers that you were let go because of reasons beyond your control. This will make it easier to secure future employment.

Being Furloughed

When an employee is put on furlough, it means that they are still employed by the organization. However, they are no longer working nor receiving a paycheck. While a lay-off is permanent, a furlough means that you are simply put on temporary leave.

Many furloughed employees still receive health insurance benefits during their time of not working. You also may be eligible for unemployment benefits while on furlough. As with all delicate employment matters, your human resources department will be the best resource for you as you navigate this time.

The best course of action when on furlough is to look for ways to get by until you are able to return to work in your normal capacity. This is a good time to look for contract work or other side jobs that can help to supplement your income.

Understanding the differences between these three types of loss of employment will empower you to make the best decisions for your financial and work future.