Losing your job may leave you feeling like your career path is suddenly a dead-end road.
Many professionals have experienced being fired, laid off or furloughed. Job loss can feel frustrating and confusing, so it’s best to understand the basic differences among these scenarios.
What Does Being Fired Mean?
If you have been fired, this means that your employer has terminated your employment, typically for performance or behavior. When this happens, make sure that you are provided the reason for termination in writing. This is important if you feel that you have been wrongly terminated. It’s also important to speak to your human resources department about details including your final payment.
If you feel that you were wrongly terminated, avoid speaking negatively about the company you worked for on social media and in your network. It doesn’t reflect well on you as a professional and can hurt your chances of being contacted by a hiring manager. While you are wrapping things up with the company, it’s best to take the high road. If you are asked what happened during a job interview, simply provide a short but truthful explanation.
[Read: 12 Signs You May Be Facing a Layoff]
What Does Laid Off Mean?
Being laid off means you have lost your job due to changes the company has decided to make on its end. If you are laid off, you didn’t necessarily do anything wrong. For example, employees can be laid off because a company needs to downsize a department or it is no longer able to provide jobs for all its employees.
If you have been laid off, it’s best to speak with your HR department and make sure that you have all the necessary exit paperwork. Make sure you were given proper notice of your layoff, and ask if the company is offering any sort of exit package and if you are able to keep your health insurance.
Although companies are not required to do so, you may be offered a severance package. According to the Department of Labor, severance pay is often granted upon termination of employment, and it’s usually based on length of employment.
You may be able to negotiate your severance package, which might include outplacement services, paid time off, extended health insurance, stock options payout and freelance work.
Research the steps you need to take to file for unemployment in your state. Also, ask if your supervisor would be willing to write you a letter of recommendation and a LinkedIn recommendation. This makes it easier to show potential employers that you were let go for reasons outside of your control, not due to any fault of your own.
[READ: How Long Does Unemployment Last?]
Laid Off vs. Fired
The difference between being laid off and fired is who is at fault. Being fired means you are terminated from your job due to something the company deemed was your fault. For example, an employee can be fired for habitual tardiness, stealing or other types of misconduct.
If you are laid off, that means the company essentially deems it at fault. It may lay employees off because of a decline in business performance or a plan to restructure, for example.
What Does Being Furloughed Mean?
Being furloughed means you are still employed by the company you work for, but you cannot work or receive pay. If you are furloughed, you may still receive employee benefits like health insurance. You may also be eligible for unemployment benefits during this time. It’s important to talk to your HR department and research your state’s unemployment website for more information.
If you are currently furloughed, you can take on side gigs and contract work for income. Reach out to your network connections and find out if some of their businesses are looking for contract workers. There are also websites such as Upwork that help job seekers find contract work.
Furlough vs. Layoff
Furloughed employees still have their jobs but have been given a mandatory leave of absence by their employer. Furloughed employees often continue to receive employee benefits.
If an employee has been laid off, they no longer have their job with the company and generally can receive unemployment benefits. The difference between being furloughed and being laid off is that a laid-off employee would have to be rehired to work for the company again.
Employee Rights When Furloughed or Laid Off
If you have been furloughed by your company and are asked to work during your furlough, the company is required to pay you for your time. It cannot force you to work for free. This is why many companies prevent furloughed employees from accessing company accounts. Find more details on the Department of Labor’s website and your state’s website concerning your rights depending on if you are a salaried employee or work at an hourly rate.
If you have been laid off, talk to your human resources department about severance pay and if you can receive your final paycheck immediately. Under federal law, employers are not required to give former employees their final paycheck immediately, but some states require immediate payment.
Employers cannot discriminate when laying off employees. If you at any point signed a contract with your company, make sure to read it thoroughly in regard to any statements about your continued employment. For example, if the contract guarantees continued employment for a certain period of time and you are laid off for reasons not stated in your contract, this would be a breach of contract.
You may have additional rights if you belong to a union in your industry. Speak with your union to find out what your rights are in these situations.
[Read: Things Your Boss Can’t Legally Do.]
Prepare for Your Next Career Move
No matter your current employment situation, you can use this time in a positive way.
Take advantage of free online courses to sharpen your skills for your next position and update your job search materials such as your resume, cover letter and your LinkedIn profile. You may also find it helpful to review your professional branding statement and make sure it reflects who you are, professionally speaking.
Leveraging your network can help you find out about unlisted job openings and also conduct informational interviews about jobs you are interested in. Connect with hiring managers and recruiters on LinkedIn and grow your connections strategically. You can also find networking events to attend through your alumni association, community organizations and online listings in your area.
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Fired vs. Laid Off vs. Furloughed — What’s the Difference? originally appeared on usnews.com
Update 03/20/25: This story was published at an earlier date and has been updated with new information.
