Essential Action Plan: 6 Strategic Steps to Navigate Your Layoff

The worst scenario you feared for your career has materialized: you’ve been laid off. In today's volatile job market, you may think being laid off is akin to a death sentence for your career, your financial security, and your mental health. On one hand, you can take comfort in knowing that, like thousands of others affected by mass layoffs in the workforce, you are not alone. On the other hand, you may be navigating uncharted waters on your own, and this massive shift seems insurmountable. 

When I personally experienced being laid off for the first time a few weeks ago, I didn’t have the faintest idea of what to do. I felt like I was completely in the dark. Thankfully, after processing the initial shock, I was able to spring into action. 

As with many other scenarios in life, I wish I had a roadmap with step by step instructions on how to navigate being laid off. I may not have had one, but this has incentivized me to share my list of essential action items that should be on your priority list within the first few days of being laid off.

These are the 6 steps you should follow to help you navigate your layoff with confidence (and also keep your sanity intact):

1. Take a Moment to Process: 

The news of being laid off can come as a shock, and it's essential to allow yourself time to process the emotions that accompany such a significant change. Take a step back, breathe, and give yourself permission to feel whatever emotion comes up — whether it's frustration, disappointment, or even relief. These are all normal feelings, and you should give yourself the time and space to process what has happened. Acknowledging these emotions is the first step towards moving forward effectively, and also ensuring that your loved ones know how to best support you.

2. Review Termination Documents:

Once the initial shock has subsided, carefully review any termination and release documents provided by your former employer. Pay close attention to details such as severance agreements, non-compete clauses, and confidentiality agreements. Understanding the terms of your termination can provide clarity on your rights and obligations moving forward.

At this stage, it's recommended that you do not sign the termination paperwork when you receive it. Your employer may give you a deadline by which you should respond, or pressure you into signing right away. You should advise your employer that you need time to review all the details and that you will let them know once you have made a decision on how you wish to move forward.  

3. Research Your Legal Rights:

It's essential to be aware of your legal rights and protections in the event of a layoff. Research employment laws and regulations relevant to your situation, including laws governing severance pay, wrongful termination, and unemployment benefits. Understanding your rights empowers you to make informed decisions about your next steps. 

One avenue you may explore is finding a severance pay calculator that takes into account your location, age, your job title, tenure within the company, and your compensation in order to give you an approximate of what you should be entitled to. 

In most cases, there will be a discrepancy between what the employer has offered versus what the severance pay should be. If you find yourself in this category, you should quickly proceed to the next step.

4. Consult with an Employment Lawyer:

Consider seeking guidance from an experienced employment lawyer to discuss your specific circumstances and legal options. While consultations may come with a fee, investing in professional advice can provide invaluable insights and assistance in navigating complex legal matters. A lawyer can help you understand your rights, evaluate the terms of your termination, and advise you on potential courses of action. 

You should also keep in mind that employment legislation and case law can be different. A lawyer will be able to approximate how much severance you would be entitled to if your case went through the legal channels, which is often different from what the law dictates as the minimum.

Once you have had a discussion with an employment lawyer, you can decide whether you wish to hire them to proceed on your behalf, or if you wish to engage in a negotiation directly with your former employer.

5. Negotiate Your Severance Package:

Depending on the circumstances of your termination, you may have room to negotiate the terms of your severance package. Whether you choose to negotiate independently or with the assistance of legal counsel, it's essential to advocate for fair compensation and benefits. Discussing your options with your former employer can lead to a mutually agreeable resolution that provides financial stability during your transition period.

Most employers will offer you the minimum severance pay required by law. If you do not negotiate, you are likely setting yourself up for a disadvantage that may become more dire in the following weeks, as you seek new employment.

Armed with the knowledge of what you’re entitled to according to the law, you are now better equipped to enter into a negotiation with your employer. Ensure that you are asking for what you’d be happy with, as opposed to asking for “more severance” and leaving the proposal open-ended.  

If you are negotiating directly, remain professional and courteous in your communications with your former employer. You should clearly state your request while providing assurances that you are willing to avoid litigation if the company is willing to settle the matter amicably. The vast majority of companies would rather avoid additional legal fees and lengthy court battles, so they will rather engage in an amicable negotiation with you.

6. Apply for Unemployment Benefits: 

In many jurisdictions, individuals who have been laid off are eligible for unemployment benefits provided by the government. Take the necessary steps to apply for these benefits right away, as there may be specific deadlines and requirements to meet. Unemployment benefits can offer temporary financial assistance while you search for your next career opportunity.

In Ontario, you must apply for unemployment benefits within 4 weeks of your last day with the company, or else you risk losing access to this benefit. If your employer files your Record of Employment (ROE) with the CRA directly, you will be able to apply for unemployment benefits as soon as the ROE has been received. For more information on employment insurance in Canada and instructions on how to apply, please visit the Government of Canada website.

Navigating a layoff can be extremely challenging and feel overwhelming, especially if you are experiencing this change for the first time. However, taking proactive steps can help you regain control and set you on a sucessful course for the future. By prioritizing self-care, seeking legal guidance, and exploring your options, you can navigate this transition with confidence and resilience. Remember that you are not alone, and with perseverance and determination, you can emerge from this experience stronger than before.