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Laid Off Vs Fired – What Is The Difference Between Them?
Laid Off Vs Fired – In both cases, the employee faces termination of employment. However, there is a major difference between the two situations. At the time when an employee is ?Fired,? the employee?s behavior or mistake is the cause of termination. However, when an employee is ?Laid Off,? the termination is because of various unavoidable circumstances that the employee is facing.
In this article, you will learn the difference between being laid off and being fired. First, we will take a look at the terms in general, and then we shall discuss the major differences between the two terms. Finally, we will discuss the major similarities for an employee in being in a situation of getting ?fired? or ?laid off.? Hence, to learn more about the two terms, read on through to the end of the article.
Laid Off Vs Fired – Understanding The Terms
As we have already discussed, both ?laid off? and ?fired? refer to situations when an employee is terminated. However, being laid off means that the company does not have the resources or the capability to retain certain employees. On the other hand, an employee is fired when the employee fails to meet the expectations of the company or does something that the rules of the company forbid.
What Is The Meaning Of ?Fired??
According to Indeed.com,
?Being fired is another example of when an employer terminates an employee’s employment. An employee gets fired for reasons under their control and when they do something wrong. An employer may fire an employee for reasons like inappropriate conduct or unsatisfactory job performance.?
An employee is fired when the employee fails to meet the expectations of the organization, is involved in misconduct, or shows poor performance at work. In general cases, employees who get fired do not receive benefits from the employer. This is because there are negative connotations associated with being fired. If an employee gets fired, it might affect future job prospects for the employee, too.
What Is The Meaning Of ?Laid Off??
Being ?laid off? is a situation that refers to an employee?s permanent or temporary termination from the job position due to the company?s inability to employ the individual anymore. This mostly happens due to various economic and structural changes within the company, including restructuring and downsizing.
In general cases, if employees are laid off, then they are eligible to receive unemployment benefits from the company?s end. Also, being laid off does not affect the future job prospects of employees (in most cases). This is because there are no negative connotations associated with being laid off.
Laid Off Vs Fired – Major Differences Between The Two
If you have a better understanding of the terms ?laid off? and ?fired,? you will be able to understand a situation when you might get terminated. Knowing this, you will be able to recover from the termination situation and also approach your next job in a successful manner.
According to the Corporate Finance Institute,
?The key difference between being laid off vs. getting fired is that a layoff is the fault of an employer while a firing occurs because of the employee?s fault. Most workers get laid off because the company is trying to cut costs, reduce the staff, or due to mergers and acquisitions.?
Workers need to be aware of the nature of getting terminated. This is because the reason for their termination from the job affects their eligibility to acquire a job after termination. In many cases, some people do not know the distinction between an employer laying off an employee and an employer firing an employee. They consider both cases the same.
However, you have already learned that both are very different situations. In one of the cases, the employee cannot be blamed at all. The employee was terminated due to a restructuring of the company or the company?s inability to continue to provide employment.
Here, US News explains –
?If you have been laid off, you may be entitled to severance pay. Talk to your HR department about any severance pay and if you can receive your final paycheck immediately. Also, employers cannot discriminate when laying off employees. If you have signed a contract with your company, make sure to read it thoroughly in regard to any statements about your continued employment.?
If your employer lays you off because of reasons not stated in your employment contract, this will be a breach of contract. Hence, in many cases (although not legally binding), employers offer severance contracts to employees, apart from various unemployment benefits.
Major Similarities Of Getting Laid Off And Getting Fired
Although there are some differences between being laid off and being fired, there are some similarities between the two as well. It is important for an employee to learn about both of them. Here are some of the major similarities between getting laid off and getting fired:
- In both situations, the employee loses the job and needs to find a new one. There is a big effort needed for a new search for a job.
- Both situations negatively impact the employee?s finances.
- Both situations have negative mental health implications for the employee. There is the presence of stress, depression, and anxiety.
- Both negatively impact the career of the employee and future job opportunities. However, it is more for the employee who is fired.
- In both cases, the employee?s professional network is disrupted, which is very difficult to build again.
Summing Up
Laid Off Vs Fired – Hope you have understood the difference between the two terms in this article. You can understand that although both are different situations, the outcome of the two is similar. Getting fired can have a negative impact on the employee?s career while getting laid off has limited negative impacts, for which employers offer some benefits.
If your employer lays you off, it is okay to ask for unemployment benefits. This is because you are laid off for a reason which was not in your control. Can you recommend some steps one can take in case someone is laid off or fired? Share your ideas with us in the comments section below.
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