What’s the Difference in Being Laid Off and Fired?
Posted November 21st, 2019
Let go, terminated, fired, and laid off are all terms that mean a person has lost their job. However, the words and phrases aren’t interchangeable, as they can be referring to dramatically different circumstances.
This is particularly true when it comes to being laid off or being fired. The difference between those two situations is significant and can have an impact on your current finances and future job search results. By understand what sets those two apart, you can be prepared for what your circumstances may mean. If you’re wondering what’s the difference in being laid off or fired, here’s what you need to know.
Being Laid Off
When a person is laid off, they usually find themselves without employment through no fault of their own. Typically, a lay off occurs when a position isn’t needed any longer, leading the company to cut it from their roster.
One or several employees may be laid off at one time. Usually, this happens during downsizing, company reorganizations, mergers, acquisitions, contract or grant losses, business needs change, or to address redundancies. Essentially, the company can no longer justify the position’s existence, so it gets eliminated, and the person in it is laid off as a result.
When a person is laid off, it rarely harms their professional reputation. Hiring managers and potential employers understand that the candidate didn’t do anything wrong as the job loss wasn’t about the person’s performance. It’s also fairly easy to discuss during interviews as it doesn’t really necessitate any discussion beyond stating the fact that a layoff occurred.
Additionally, when you’re laid off, you usually get the financial benefit of unemployment. Since you lost your job through no fault of your own, you are typically eligible for payments.
Being Fired
When a person is fired, the decision is more personal than it is with a layoff. Typically, it involves a performance issue, as the employee isn’t meeting the needs of the company in some form or fashion. It could also be the result of violating a company policy or acting in a way that the organization doesn’t support. Additionally, the role itself isn’t eliminated, and the business will likely select a new hire in the near future to fill the vacancy left by the fired worker.
After being fired, the road ahead can be challenging. In many cases, you won’t be eligible for unemployment, though that isn’t always the case and may depend on the nuances of your unique situation.
Further, during a job search, you now have a difficulty to overcome. Trying to hide a firing isn’t a good idea, as many hiring managers have connections that will allow them to discover the truth. As a result, you’ll need to be prepared to own up to your part in the situation while also finding a way to pivot the discussion to showcase what you’ve learned from the experience and how you are ready to excel today.
When it comes to knowing whether you were laid off or fired, you can usually tell based on the language used when you get the news. If you’re told that the workforce is being reduced, your position was eliminated, your role was deemed redundant, or that the company is reorganizing, you were probably laid off. In contrast, if your performance or behavior is discussed in a negative light, you were likely fired.
In either case, it is possible to bounce back. If you are looking for a new job after being laid off or fired, the team at Bayside Solutions can help. Contact us to speak with one of our skilled recruiters today and see how our services can benefit you.
