Employee Benefits After You Leave Your Job
It pays to learn as much as you can about these benefits before you move on to something new. In many cases, it’s harder to learn about your rights when you’ve already turned in your lanyard or equipment and lost your face-to-face access to HR.
Employee Benefits When You Leave a Job
Learn more about unemployment insurance, severance packages, giving notice, writing a resignation letter, health insurance, retirement plans, workers compensation, disability, references, and other potential benefits, so that you know what to ask before you go.
Quitting Your Job
Providing two weeks notice is customary. Even if your employer doesn't ask for notice, it is a good idea to offer it. Even though it's not easy, it is best to tell your boss in person. Try to remain positive since you may need a reference in the future. In some cases, you will need to resign in writing.
A well-written resignation letter can help you maintain a positive relationship with your old employer while paving the way for you to move on. Networking isn’t just something that happens at formal networking events. Keeping ties to your former colleagues will help you grow a robust network that will help you grow your career for years to come.
Getting fired can happen to the best of us. Sometimes there's a personality conflict. In other cases, the job can be difficult or there simply may not be a good match between you, the job, and/or the company.
Try not to take it personally. It doesn't mean that you are a failure. Rather, it means that you weren't meant to be doing this job. Many famously successful people were fired at some point in their career. This experience may lead you to better opportunities.
Managing a Lay-Off
If you’ve been laid off, you’re also in good company. By one estimate, 9 million American workers were laid off during the last recession. Depending on your industry and the economy, you can find yourself out of a job through no fault of your own.
But even when you know you didn’t do anything to cause your termination, losing your job is stressful. The best thing to do is to learn about the benefits you’re entitled to receive as a former employee. In addition to unemployment insurance, health insurance, and pension benefits, you may be offered a severance package. Companies aren’t obligated to provide severance pay; however, depending on circumstances, they may do so anyway.
Before you leave your job, you will need to know what benefits you are eligible for. You are entitled to receive some benefits by law. Your employer may opt to provide additional benefits other than those mandated by state or federal law.
Ask about severance pay, accrued vacation, overtime and sick pay, pension benefits, and eligibility for unemployment insurance. Request information on the continuance of health and life insurance benefits. If you have any questions on what is offered, check with your State Department of Labor for clarification.
Don't wait to file for unemployment. The sooner you file, the sooner you will start receiving checks. Look up the details on where to file for unemployment, how to file, what you need, eligibility requirements, disqualifications, extended benefits, and more unemployment insurance information.
Health Insurance (COBRA)
Your employer, if the firm has over 20 employees, is mandated by law to offer health insurance coverage through Cobra to terminated employees for 18 months. You will need to pay for this coverage. In some cases, employers will pay for coverage for a limited time as part of a severance package.
Health Insurance (Obamacare)
The government’s Health Insurance Marketplace provides individuals a way to shop for coverage on their own, to see how individual and family plan prices compare to COBRA and decide which option is the best for you.
Pension and Retirement Plans
You may entitled to pension and retirement fund benefits after you terminate employment. 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. If you are a participant in a defined benefit plan, your benefits will begin at retirement age.
Having good references can be the clincher that gets you that new job. Here's how to request references and how to write them. Don't wait to ask for a reference. Whether you have been laid-off or resign, ask while your employer still knows who you are. If you have been fired, you may be able to ask a colleague for a reference.
Workers' Compensation and Disability Insurance
Are you unable to work because of an injury or illness? If so, you may be eligible to receive workers' compensation or disability benefits.
Find Out What Comes Next: Whether you leave voluntarily or after a termination, you may be entitled to benefits.
Get Information About Your Benefits: These benefits may include severance pay, health insurance, accrued vacation, overtime, sick pay, and retirement plans.
Companies Aren’t Obligated to Provide Severance: However, many employers will offer a package anyway.
Line Up References Before You Leave: Even if you’re fired or laid off, it pays to ask what your former employer will say about you to prospective employers in the future.
The information contained in this article is not legal advice and is not a substitute for such advice. State and federal laws change frequently, and the information in this article may not reflect your own state’s laws or the most recent changes to the law.