Difference Between Laid Off and Fired

Laid Off vs Fired

Employment termination is when a person’s job with a company is ended. It might be because of a decision made by the employer, the employee himself, or both. There are several types of employment termination, namely:

Termination by joint agreement of both the employer and the employee to end the employment as in the case of contractual employment and mandatory retirement. It is also referred to as forced resignation and is intended to soften the firing. The employee cannot collect unemployment benefits with this type of termination.
Voluntary termination which is when an employee decides to leave his job due to reasons such as health, family, retirement, disability, dissatisfaction, or a new and better job offer from another company. Employees who voluntarily resign cannot collect unemployment benefits.

Involuntary termination which has two basic types:

Being fired which is a decision made by the employer due to the employee’s fault. It is considered a sign of failure and may make it hard for the employee to find a new job. It is also referred to as dismissal, being terminated, and getting the sack.
Being laid off which is an involuntary termination that is less harsh than being fired. An employee may be laid off due to several reasons, such as a company’s restructuring, bankruptcy, downsizing, redundancy, or when the company’s functions have changed.

When an employee is laid off, his position is usually not refilled, and he gets a fixed amount of money from the company and can file and receive unemployment benefits and compensation.
An employee who is fired from his job may or may not be able to get unemployment benefits depending on the reason for the firing. If it is because of financial cutbacks by the employer, and if his lapses are not serious and do not justify denying him his benefits, then he can claim these benefits.

If it is because of misconduct that may cause harm to the company like; dishonesty, revealing trade secrets, chronic tardiness and absences, sexual harassment, insubordination, and going to work when drunk, then he cannot claim unemployment benefits.

Summary:

1.Both being fired and being laid off are involuntary terminations decided upon by the employer. Being fired is due to the employee’s fault while being laid off is due to restructuring, downsizing, or bankruptcy.
2.Being fired is harsher while being laid off is less severe.
3.Being laid off entitles the employee to receive unemployment benefits while being fired may or may not entitle an employee to receive benefits.
4.When an employee is laid off, he has a better chance at finding a new job while when an employee is fired, it would be harder for him to find a new job.
5.The position of a laid off employee is usually not refilled while the position of a fired employee is refilled.
6.Being fired is considered a sign of failure on the part of the employee while being laid off is not the employee’s fault.

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