Today, laid off or fired are questionable concepts. They both mean a break in employment contracts between employees and employers. But they also mean very different things for the company and the employees in different ways:
Terminated employees may say the company fired them, but HR professionals know this is not always the correct description.
However, the distinctions don’t end there. Our article will examine the difference between being laid off and being fired.
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Firstly, it is worthwhile to understand the subtleties of the concept of ‘dismissal’ itself and then delve into the details. Dismissal is a rather broad term. It means that the relationship between the employer and the employee is terminated. But dismissal is of two types:
Each type of dismissal has its peculiarities. Voluntary dismissal is leaving the company at will for:
Staff members decide they no longer intend to work for the company.
Involuntary redundancies are the opposite of voluntary redundancies. The key difference between voluntary and compulsory redundancy is that the employee has no choice.
A redundancy is the dismissal of an employee through no fault of their own. It most commonly occurs in the following situations:
The employee has no control over the situation. The initiation of redundancy among the staff is a business decision caused by external factors (no fault of the employee). Involuntary termination means that the employee’s wish is not taken into account. But most often, in this case, it is possible to receive unemployment benefits so that it is possible to get back on one’s feet in the future.
Although employees may think otherwise, it is technically up to them to terminate their employment. More often than not, for a job loss to occur, one must:
Dismissal occurs because of the employee’s action. It is worth noting that, in this case, unemployment benefits are not available.
Wrong terms can lead to a distortion of the whole concept. These terms are not always used correctly in everyday speech. Every employed person should certainly understand the meaning of each term.
When an employee is reduced, he often faces a wrongful termination because of a business decision. The latter is beyond his control. The line manager or director of the organisation decides to downsize for specific reasons. Most often, a redundancy involves:
Note that redundancy should not affect the employee’s ability to find a new position with another company. Downsizing is just part of doing business. It’s about the company. That said, a redundancy should not affect a particular employee. In practice, more often than not, redundancies are sympathetic to future employees and colleagues. The fact is that redundancy is often a very stressful event in a person’s life.
Being made redundant implies an employer’s unwillingness to deal with a particular person. More often than not, it is caused by the fact that the employee has broken company rules. It can be a single serious offence or a systematic lapse. It can be called a voluntary dismissal because the employee made certain choices (not doing the job properly, missing deadlines, and so on) that led to the loss of the job.
Dismissal affects the employee’s future working life, and future employers want to know why an employee has been made redundant.
Key differences between redundancy:
Dismissal has the following differences:
Benefits for redundant and laid-off employees are also worth considering separately.
When it comes to losing a position in a company, to lay off or fire employees, they want to know their rights and benefits. There are differences between unemployment benefits for downsized and fired employees.
An impacted employee receives certain benefits due to downsizing in a company, each of which has its purpose. The biggest benefit of involuntary terminations is the severance package. It fulfils 2 functions:
Also, involuntary terminations often involve offering outplacement services. In this case, the employee receives comprehensive support during the job search in the form of:
This assistance is offered to help the downsized employee find a new job. In this case, the company is to blame for the position loss, not the employee himself. Therefore, the better support the departing employees receive, the less painful the redundancy will be.
If we raise the issue of rights, then redundancy requires the company to comply with legal norms and laws. It all depends on the scale of the event. For example:
In some situations, it is necessary to cooperate with a law firm to ensure that the layoff is carried out according to all the rules. This way, the downsized employee can rest assured that all local and federal laws have been followed and that he or she has received everything they are entitled to.
If an employee is terminated because of certain actions, they will not have to overcome a variety of legal hurdles. This category of employee falls into the ’employment at will’ group. It means that the employee resigns:
Therefore, even if the employee has that very ‘wish’, it is not worthwhile to dismiss the employee without a reason, indicating simply ‘at will’. It includes redundancy. Often, ‘at will’ is only discussed if it is the dismissal of a problem employee.
In this case, the company is not obliged to provide employees with benefits. The employee does NOT receive
Dismissal is a complete break with the company with little or no support.
In practice, dismissal of an employee is not a quick decision unless the employee has grossly violated company rules or created a dangerous situation. More often than not, dismissal takes quite a long time. Even if an employer wants to get rid of an employee, it is still determined that they will want to dismiss them to maintain their future career.
In this case, other methods can be used to make the dismissal more loyal:
In the first case, the employee can receive all the benefits: severance pay, outplacement, etc. The second option is appropriate when the employer is interested in the employee and wants them to return to duty after some time.
In general, the employer has alternative methods that will allow all parties to part ways on the best terms for both.
Losing a job is always taken painfully. It is a serious stress. Moreover, the higher the employee’s position in the company, the weightier the loss. It doesn’t matter whether a person is downsized or laid off. The experience can bring a lot of pain and confusion. But it’s also not worth stopping. There are a few things that are worth doing:
It would help if you had written notice in the event of redundancy or dismissal. If the reason for the dismissal is unclear, you should contact the company for clarification. The nature of the dismissal has a significant impact on future employment. In addition, a downsized employee should receive severance and other benefits.
Severance pay is unemployment compensation and benefits employees can receive if they leave a job voluntarily. Lump sum payment depends on several factors:
If the employee is terminated, the employer can decide whether or not they will pay severance pay.
Before leaving the workplace, an employee should find out about their final paycheck. Specifically, you need to know:
Pay attention to the fact that the employer can pay the employee’s salary immediately after the termination of the labour contract or after a time. It is also worth considering that the dismissed employee can claim for:
Check with the company’s human resources department for any entitlements.
If an employee has been laid off due to the company’s fault, they can file an unemployment claim for unemployment benefits. You can submit it in different ways:
It is best to apply when your employment contract is officially terminated.
It doesn’t matter if an employee has been downsized or laid off. They always need a letter of recommendation. Especially those employees who have been made redundant need one. It’s also worth discussing with the employer beforehand:
Fired employees should remember that a potential employer may find out if they performed poorly.
Once you have received your final paycheck and all other matters have been handled, you can start looking for a new job. To do this, you need to do the following
Afterwards, it’s time to focus on another crucial step: learning how to behave properly during the interview. This preparation will not only boost your confidence but also ensure that you are ready to make a strong impression.
Most employees want to build a long-term relationship with their employer. But this is not always the case. Employers may terminate employment contracts for one reason or another. A person can lose his job in 2 ways: to be dismissed or to be made redundant. Each option has fundamental differences. It concerns not only benefits but also further employment prospects.
