Home » Terminated Vs Laid-off | Difference You Should Know

Terminated Vs Laid-off | Difference You Should Know

Losing your job is never easy. Beyond the loss of a regular salary and insurance, you may also worry about losing your friends and a sense of purpose in life. At times, it can be challenging to cope with, but once you get over the shock, you will start looking for new jobs. This is where your actual struggle begins. 

Whether you were laid off or terminated, eventually, you will have to explain why you lost your job to the employers. You may think that these two terms are interchangeable, they are not. 

There is a vast difference between being terminated and being laid off. In addition, it will also determine how desirable you are for the next job. So, here in our article, we will discuss being terminated vs. laid off. We will also tell you how to land up a new job even after getting terminated or laid off.

Laid off Versus Terminated 

Laid off Versus Terminated 

There is a vast difference. When you are laid off from a job, it happens due to being completely out of control. Generally, layoffs occur when a company requires cost-cutting. There can be various other reasons for cutting staff as well. 

The critical part of layoff is that you lose your job because of the company’s performance. It is not your performance that is to be blamed. However, it’s usually because of your performance when you are fired. It may be because you broke a rule or a particular set of rules or your performance was not up to the company’s standards. It may also be that you failed to complete your assigned duties even after being given multiple opportunities to improve. Whatever the reason, you lost your job because of your behavior towards your work and your performance.

What Happens When You are Laid off or Terminated?

What Happens When You are Laid off or Terminated?

While termination generally happens suddenly and without any warnings – you typically have 30 days’ notice that the company layoffs are occurring when you are laid off. In either case, you should try participating in an exit interview on the last day of your employment. You must keep in mind that exit interviews are not mandatory. 

During an exit interview, you will receive a list of benefits you are entitled to and what you require to do to access them. While it is understandable that you may not want to participate in an exit interview if you are terminated, it is a good idea to do it anyway. 

However, no matter how your employment ends, you are legally entitled to your health insurance. You can remain in your company plan for up to 18 months. You will have to pay the total premium amount of insurance every month during that span, and it is pretty legal for your company to charge you up to 102% of that premium. 

Suppose you wish to remain on the policy. In that case, your employer will provide you with details of what amount you must pay at the end of each month and when you must make the payment during the exit interview. 

The exit interview is also when you turn in all your company assets or make arrangements to return them. You are also likely to be asked to sign legal documents regarding your layoff or termination. However, you need not sign any document during the exit interview. You are allowed to take the records along with you. You can also have a lawyer look them over before you sign there. You do not have to sign the documents if your lawyer advises you not to. Even if you sign the documents during an exit interview, you have the right to terminate your signature within a limited period.

Also Read: 18 Best Websites for Remote Jobs

What Does Being Laid off Mean to You on a Short-term Basis?

What Does Being Laid off Mean to You on a Short-term Basis?

One of the most daunting aspects of losing your job is to say goodbye to your monthly salary. For those laid off, severance and unemployment benefits can soften the blow and keep you afloat while looking for your next job role. Severance is never a guarantee. It may differ from company to company.

Employers generally offer this amount for legal protection. It is generally in the employee’s best interest while they are searching for a job. However, in exchange for the severance, the employee may have to sign a legal agreement with the company. 

The company offers a severance package only to those employees who take legal actions against the company for complete termination. You can talk to the company about a severance package when it does not offer it during your layoff.

Unemployment benefits will also be offered to you by the government because of your layoff. Ultimately, it will entirely depend on the employer to determine whether it is an option or not. In case the release is because of financial problems of the business, it is pretty unlikely that you are going to get that option. 

In addition to that, your company may offer you certain other perks for supporting you during your unemployment period. For example, they may provide job search assistance like getting a referral to work with an outside agency to help you find a new job. In addition, you may not have to pay back any money that you have previously received from your employer.

What Does Getting Terminated Means For You in the Short Term?

What Does Getting Terminated Means For You in the Short Term?

While most people think that employees who have been fired do not receive any parting compensation, this is not true.

Generally, a termination happens because of misconduct. There have been cases where the company trains the employees improperly, and thus, they could not fulfill their job responsibilities. In such cases, a company offers severance to the employees. However, in most cases, termination occurs when you cannot live up to the company’s expectations.

In such cases, you will not receive any compensation still if the employee is removed because the position is no longer suitable. Yet, the employees try to do their best of their ability; the dismissed employee may be eligible for certain perks based on the subject of termination. Most important, you need to have a proper idea of the cause of your termination. Do not easily accept your termination based on flimsy grounds. You should also have the option to take legal advice regarding your lawyer.

How Being Laid Off Can Impact Your Job Search?

How Being Laid off Can Impact Your Job Search?

It does not have a significant mark on your resume in the modern age if you are laid off. It’s because layoffs occur when the company fails to meet its objectives and not because of its performance. Regardless of whether you are terminated or laid off, once you have a gap in your resume, you will have to prepare an explanation because it will come up in future interviews. 

There are a lot of highly-skilled, good performers who have been removed as their companies were struggling hard to survive. 

Layoffs can also occur when companies merge, relocate or go through a terrible time. If you lose your job, give your future employer the cause of your layoff and move on with it. Layoffs can happen to anyone and aren’t something you should dwell on. However, a series of layoffs on your resume will create a sense of suspicion among employers.

You May Also Read: 9 Job Interview Tips To Ace Your Next Job Interview

How Does Getting Terminated Impact Your Job Search?

How Does Getting Terminated Impact Your Job Search?

On the other hand, getting fired is an entirely different scenario, and you may be tempted to hide what had happened. It is always best to come up with a genuine answer. It is a small world that we live in, and your future employer may easily acquire information about your termination from your past employers. So, it is always better to come up with an accurate answer. If getting fired was because of a mistake on your part, then you should try to own it like a professional instead of blaming someone. If you pass the blame, you will seem immature and childish. Even if you are right, there is no way you will win. Instead, talk about your desires to improve and your willingness to move forward. This is going to make things a lot easier. Your future employer will also be more than willing to allow you to work at his organization.

Steps to Undertake if You are Laid off or Terminated

Steps to Undertake if You are Laid off or Terminated

Becoming unemployed can be one of the most stressful experiences of your life. The higher the position is, the more significant the job loss. Moreover, employees belonging to the corporate structure also matter. Whether one is terminated or laid off, the experience can cause you a lot of anger, pain, and confusion. Employees whose employment contracts get terminated share this experience with their family members. They also have to bear a lot of stress. Some employees may also end up getting depressed. So, here we have come up with a few steps that you are required to undertake after you have suffered from a job loss.

1. Understand the Nature of Termination 

Suppose the reason for letting go of an employee is not clear, in that case, the affected person should ask for proper clarification. The nature of termination will affect his eligibility to acquire jobs from other companies. Also, laid-off workers are entitled to receive certain benefits from the company. So, it is important to claim those benefits as well, and that’s why it becomes essential to understand the nature of the termination.

2. Check the Severance Package 

The severance package is the compensation and benefit that the employees receive if they are removed from a company unwillingly. The severance that an employee receives will ultimately depend on the company. If the employee is sacked because of underperformance, they may not receive any severance package. The employee who has worked with the company for a longer time is entitled to a higher severance. 

3. Collect Your Final Paycheck 

Before leaving a company, you should enquire about your paycheck. More specifically, the individual should know when and how the last payment will be made. In some states, the law requires the employer to pay the employees immediately after the termination of the contract. It would help if you kept in mind that the laid-off employee is also entitled to sick leaves, paybacks, and secured vacation. They should inquire about all that from the company’s HR department and settle everything down with the company they are leaving.

4. Apply For Unemployment Benefits

In case an employee is being laid off because of the company’s fault, then he is very much eligible to apply for unemployment benefits. To receive the benefits, first and foremost, you will have to register for unemployment. It can be done either online or by sending or over mail. Once you have registered yourself, you can make your claim and proceed. Applying online is one of the easiest ways to register for unemployment.

5. Get References

Whether one was laid off or terminated, one should always ask for a letter of recommendation from the company. This is particularly important if the company is letting you go because of a company layoff. It is also advisable to ask the company’s management how to handle any inquiries made regarding the employee’s dismissal. For example, ask whether they only plan to share the date of employment or wish to provide further information to the future employer regarding the candidate. You can also request the employer to provide good reviews about you if any inquiry is made.

6. Start Looking For a Job 

Once you are settled with your previous company, it is time for you to look for new jobs. This can be a stressful and challenging process initially, but if you are well-prepared and have the required skills, you are not going to face a lot of problems in looking for an ideal job of your choice. Prepare a resume for yourself, list down all your skills and requirements, and start applying for jobs as soon as possible.

Few Ways to Keep Your Job

Few Ways to Keep Your Job

Here we have come up with some of the ways by which you can keep your job and avoid dismissals:

1. Try to be Punctual

You should always try to have perfect attendance at work. Try to take breaks only during lunchtime. Being punctual will allow the team to reach its goals and will also help you to build an excellent relationship with the other workers. 

Try to add value to the team: You should become an integral part of your team. Aim to become a valuable employee of your organization. In this way, you can help your organization save costs and streamline the processes. You can also attract more customers to your company.

2. Offer Assistance to Others 

You can try helping other employees who cannot achieve their objectives. Helping others can, at times, be beneficial for you. You fall under the good books of your employer. You also acquire the respect of the other employees of the organization.

3. Try to Maintain a Flexible Attitude

Flexibility is your ability to adjust to changes quickly. As an employee, being flexible will allow you to grow. It will also help you maintain your employment for a prolonged duration of time. Of course, it would help if you were prepared to work under any technology. You should also be able to adjust with all your team members well.

4. Try Developing Your Skills 

In the world of technology, nothing is constant, and if you want to survive in the corporate structure, you need to upgrade your skills regularly. In addition, you should provide your company with what it requires from you. This will allow you to build a solid foundation and become an inevitable part of your organization.


Most individuals try to build a long-term relationship when they take up new positions with a particular organization. However, their employment may get dismissed by the employers for some reason. There are two different ways by which employees can get removed. These are getting laid off or getting fired. 

Differentiating between being fired or terminated versus laid off is very crucial to an individual’s prospects for future employment. 

Getting fired means that the employee loses his job because of his own mistake or poor performance, while getting laid off means that the person loses the job because of other underperformance of the company. The individual is not to be blamed for a layoff. So, you must get to know the difference well in advance before you start applying for a new job. This is going to help you make your career more successful. 

You will also get a lot of opportunities in the future to further enhance your skills. In case you are still facing any kind of problem understanding the differences between terminated vs. laid off, you can connect with us, and we will provide you with the required advice regarding the same.