What Happens When You Get Laid Off?

You may have just been told that your job is ending, even though you were doing your work and had no warning that anything was wrong. If you’re trying to understand what happens next, the first thing to know is that a layoff usually means your employer is eliminating your position or reducing its workforce, rather than ending your employment because of something you did individually.

You Can Be Doing Your Job Well and Still Get Laid Off

Companies lay people off for different business reasons. A company may reduce its workforce, reorganize departments, eliminate certain positions, or cut back on an area of the business.

That can mean there were no warning signs. Your responsibilities may not have changed. Your manager didn’t necessarily have a problem with your work. You may even have had projects and meetings scheduled for later that week.

Being fired generally involves a decision connected to the individual employee, such as performance or conduct. A layoff is tied to the employer’s decision to eliminate jobs.

A layoff may affect one position or many people at once. A team might get smaller, a type of job might disappear, or the company may make cuts across different parts of the business.

Not Everything Ends on Your Last Day

Being laid off doesn’t necessarily mean every part of being an employee ends that same day. You might stop working and lose access to your company email or other work accounts, while other things connected to the job are still being wrapped up.

Pay you’ve already earned is still owed, although when final wages are paid can depend on where you live. Health insurance may also remain active until a later date, depending on the employer’s plan. So someone can already be finished working while still receiving a paycheck or having employer health coverage for a period of time.

Severance is a separate question. Your employer may offer it, but not every company does. Being laid off doesn’t automatically mean you’ll receive severance, so you’ll need to check your layoff paperwork or ask your employer what, if anything, is being offered.

If you have questions about what happens after your last day, asking your employer in writing can give you a clear record of the answers. Questions might include:

• What is my official last day of employment?
• When will I receive my final paycheck?
• When does my health insurance coverage end?
• Is severance included?
• What happens to unused vacation or PTO?
• How and when should company equipment be returned?