Things You Should Do After Getting Laid-Off or Fired

When you're terminated from employment, it makes a difference whether you are laid-off or fired for cause. If you have been downsized or laid-off for lack of work or any other reason, you'll be entitled to different benefits than if you were fired.

Here's what to do if you are informed that you have been fired, as well as information on what not to do (or say) when you've unexpectedly lost your job. 

Severance pay (as well as severance benefits) may be given to employees upon termination of employment.  It is usually based on length of employment. If you are laid off from your job or your position is eliminated, the employer may provide severance pay, but this isn't required.

Discover what a severance package might look like, and how to negotiate a severance package.

Before you leave your job, make certain you know when you are receiving your last paycheck, and how it will be delivered to you. In some states, employers are required to pay it immediately. In others, there may be a lag.

You may be entitled to accrued vacation, sick leave, overtime, or back pay when you lose your job.

This is also a good moment to confirm that the company has your correct address on file (even if you are typically paid through direct deposit). 

Read here for more information on receiving your last paycheck, including guidelines for when you can expect to get it, how much it should be, and what will be included.

When you are fired or laid off, you might be eligible for particular benefits. Some of the benefits you had while on the job, such as health insurance, might continue as well, at least for a certain period of time.

Get an overview of the employment-related benefits that you may be eligible for when you lose your job.

Continuing health insurance coverage, whenever possible, is important. The Consolidated Omnibus Budget Reconciliation Act (COBRA) gives employees and their families who lose their health benefits the option to continue group health benefits provided by their group health plan for limited periods of time.

Another option under the Affordable Care Act (known as Obamacare) is the government’s Health Insurance Marketplace, which allows you to shop for coverage in your state.

Read here for more information about your health insurance options when you lose your job.

What happens to your pension after you're laid-off depends on the type of plan you have. If you have a defined benefit pension, your benefits will begin at retirement age. You might be able to transfer the value into another plan.

If you are enrolled in a 401(k), profit sharing, or another type of defined contribution plan, your plan may provide for a lump sum distribution of your retirement money when you leave the company. Read here for more information about the different types of plans you might have, and how you might be able to maintain those plans after leaving your job.

If you have been laid off from your job through no fault of your own, and meet any other requirements for unemployment in your state, you should be eligible for unemployment benefits.

Read here for tips on how to file for unemployment.

When you are fired or laid off, you still might ask for a letter of recommendation (especially if you are let go because of company layoffs or another similar reason that is unrelated to you or your work).

Regardless, you should ask how the company plans to handle any inquiries about your time with the company. Ask if the company will simply share your dates of employment, or if they will tell other employers that you were fired.

Once you have left your job and wrapped up all the final details of your departure, it is time to start looking for a new position. Here are all the resources you'll need for a successful job search.

Read here for information on how to write resumes, CVs, cover letters, and other employment materials; where to look for jobs; and how to prepare for interviews. Also get information on how to answer interview questions about why you were fired or laid-off from your job.