What is the difference between Laid Off and Fired?

Employment termination is when a person's job is lost. There are different types of employment termination, namely, voluntary and involuntary termination. Laid off and being fired are both under involuntary termination. Fired is a decision made by the employer due to the fault of the employee. It can also be referred to as dismal, sacked, or being terminated. When an employee is fired, he finds it hard to find another job. When an individual is fired, all the unemployment entities are not received. Laid off is an involuntary termination, which is less harsh than being fired. An employee can be laid off due to several reasons like company restructuring, downsizing, bankruptcy, or when the company function has changed. When an employee is fired, there is a better chance of finding a new job. When an employee is laid off, he receives all his unemployment entities.

With the economy being so unpredictable these days, many people are out of work and are seeking employment. People lose their jobs for various reasons. These include termination by joint agreement of both the employer and employee to end the working relationship, which is the case with contractual employment and mandatory retirement. It is also called forced resignation. In this case, the person cannot collect unemployment benefits. Voluntary termination is where it is your choice to leave, and you are leaving the company of your own volition. You also cannot collect unemployment benefits in this situation.

Getting fired by a decision made by the employer due to the employee continually being late, poor performance, incompetence, insubordination, or some other reason is also not grounds for collecting unemployment. You can also be laid off, which is less shameful than firing. In this instance, the company does not have a place for you anymore. When an employee is laid off, he or she can collect unemployment benefits. It all depends upon the circumstances surrounding termination.

Being laid off and being fired are two basic types of involuntary termination. An employer can fire an employee if he or she makes a costly fault that worth being fired. This action can have a negative on an employee and might have issues with getting a new job. Other terms that are used for this are being sacked, dismissal, or being terminated. Being laid off is also another form of involuntary termination, but not as harsh as being fired.

Various reasons why an employee might be laid off include the organization's restructuring, redundancy, downsizing, bankruptcy, or change in the organization's pattern of operation. Most times, when an employee is laid off, no other person is employed to fill up, and the laid-off employee can still be compensated with some payments. Meanwhile, a fired employee will most likely not be paid any amount as compensation. Nevertheless, it depends on the reason why the employee was fired.