Getting laid off can be like taking a sledgehammer to the chest. You rarely see it coming – even in times like these – and if there are hints of company-wide layoffs on the horizon, you don’t figure you will among the unlucky to lose their job. But it happens to most of us, and if ever there was an event to compare to having the rug pulled out from under you, being laid off is it. But it’s key that you keep your wits about you as you prepare to leave that job, no matter how quickly they want you to clean out your desk and skedaddle. Issues of invested money, health coverage, remaining pay, unemployment, and severance need to be dealt with smartly. Drown your sorrows only after taking care of the following, as they will secure a less bumpy transition for you as you prepare to hunt for new work.
1. Find out about unemployment eligibility– Figure out the details of your particular situation. If you’re being laid off, that means you’ll most likely be eligible for unemployment insurance. Be wary if your company asks you to resign and just take your serverance, as that may be a way for them to get out of having deal with your unemployment benefits. And please do file for those benefits: don’t be too proud to take the assistance that you are being offered, and remember they call it insurance for a reason. If you got a severance, there’s a chance you’ll be have to wait a few months to file for unemployment, but if you can do it right away then do so, as the process takes a few weeks to get rolling.
2. Immediately request a laid-off employee letter– You weren’t fired, so you’ve got nothing to be ashamed of on your next job interview. Make sure your company prepares you a laid-off employee letter before you leave on your last day. Keep this as part of your new application package, and this will let new potential employers know that you were let go as part of a larger general layoff and not because of any issues on your part.
3. See where your health coverage stands– It may be a delayed reaction after the shock of being laid off, but it’s imporant to remember that you’re also about to lose the health insurance plan you had set up with your former employer. Chances are, your ex-company will continue to cover you through the end of your last month. After that, it’s time to check what your continuing coverage opitions are, and usually you’ll be looking at COBRA coverage. COBRA allows you to continue the same health-coverage plan you had with your job for up to a year-and-a-half, but you will be expected going forward to pay the full premium. Chances are you’ll be able to find a more reasonable plan to cover you when you’re between jobs if you go insurance shopping.
4. Get a clean accounting of all the pay owed you– Once you’ve been laid off, your responsibility to the company drops to zero and your responsibilty to yourself become paramount. So make sure you know exactly how much you’re still owed by the company and exactly when to expect that final paycheck. You’ll also want to ask about ununsed vacation days and whether you’re due to be reimbursed for those as well. Some companies do and some don’t, so you’ll have to look at the fine print.
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5. Don’t sign for serverance right away– Your company may want to have you sign severance paperwork immediately, as it is usually designed to protect them from any possiblity of lawsuit, but you’re on your time now (for better or worse) and it’s worth examing the severance deal closely. Make sure you know what you’re being paid and look for ways you might be able to demand a little more. And if you think you’re being discriminated against in any way, it’s better to get in touch with a lawyer.
6. Get a clean accounting of your savings with the company– This means your 401k, your health savings account (HSA), and your flexible spending account (FSA). For the 401k you may be able to roll into a more flexible IRA, have it continue with your next employer’s 401k offer, or take the cash (after some serious penalties.) The HSA should be yours to keep, but the FSA is a little shakier: you most likely won’t be able to take any of that with you after you’ve left the company, but you may have options.
7. Get your LinkedIn profile updated and working for you – With any luck you’ll be able to sliide right into your next job, but be aware that the modern job hunt is much more complex and ever-changing than it may have been the last time you needed to find a job. So get going on LinkedIn, which can be a major help in organizing and attracting attention to your new job search. And good luck!
