7 Questions to Raise Immediately After

JOB SEARCH

You’re Laid Off

by Susan Peppercorn
March 31, 2020

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With unemployment claims surging past the 3 million mark in one week — the highest
in U.S. history and surpassing the number of jobless Americans during the Great
Recession — it’s no surprise that anxiety about job loss looms large. Since the first case
of Covid-19 was reported in the U.S. in January, nearly one in five American workers
has been laid off or has experienced hours reductions, according to a recent Marist poll. /
And the worst may be yet to come. According to Moody’s Analytics, nearly 80 million
people in the U.S. are at a moderate or high risk of being laid off as a result of the
pandemic — meaning more than half of the workforce could be facing job losses in the
months ahead.

While some employers can consider more moderate options to laying staff off outright
— such as furloughs, reduced schedules, or pay cuts — the fear and uncertainty behind
when and if companies will be able to afford to re-employ their workers is resulting in
many companies simply shedding employees.

With millions of people wondering what to do in the face of an actual or potential job
loss, I polled several human resources experts and executive coaches about the
questions they recommend workers ask their employers should they receive a layoff
notification during the global pandemic. Here are their collective suggestions on what
issues to raise with your boss or HR department while you’re still employed:

Q: When will I receive my last paycheck? Will I get paid for my unused vacation
time?

One of the first things you should do if you’re worried about losing your job (or have
already lost it) is to know where you stand financially. If you still have your job, double
down on your short-term savings plan. Scrutinize your spending to avoid unnecessary
purchases; trim memberships and services that you can live without.

If you’ve been laid off, find out when you’ll receive your last paycheck and what it will
include. Verify details on benefits with HR, such as whether you will get paid out for
unused vacation time. It’s also imperative to apply for unemployment insurance as soon
as possible; knowing the amount you are eligible to receive will provide a clearer
picture of your finances.

Q: Will I receive severance pay?

/
Severance packages can come in several forms, including an extension of healthcare
benefits and/or career transitions services, but they usually consist of a one-time lump
sum paid to employees after their last day of employment. No federal laws currently
require businesses to offer severance pay to terminated employees. However, New
Jersey recently became the first state to pass legislation that requires employers to
provide a 60-day advance notice of a layoff to workers, plus provide severance pay in
companies with 100 workers or more.

Receiving a lump-sum severance payment can feel like a windfall, but it can quickly
disappear without a plan. Draw up a monthly budget and ask yourself these questions:

How long could it take to get another similar paying job?

Do I have enough to pay my mortgage and other debts for several months?

If a layoff has impacted you, don’t assume that you can’t ask for more severance than
the company is offering as its standard package, especially when it pertains to ancillary
services such as career transition consulting. It’s in the best interest of your employer to
maintain a positive relationship with you and build employee loyalty, particularly if the
company wants to keep the option open to hire you back in the future.

Q: How long will I have to exercise my stock options?

If you received news that you will soon be laid off, ask your employer how long you
have to exercise your stock options, and which stock awards you’ll forfeit.
Unfortunately, the steep stock market drop that has occurred over the past few weeks
means that many executives have watched the value of their company stock nosedive. If
you had 20,000 shares valued at $30 per share in January, for example, that amount
may have already plummeted by 25% or more. Holding your stock options until the
market rebounds may make good sense if your severance plan allows an extended
period to exercise them.

Q: Is the company offering healthcare coverage after my last day of work, and for
how long?

/
The terms of your employer’s health plan and contract with their health insurer or
third-party administrator will determine whether active employee healthcare coverage
can continue during a layoff or short-term leave of absence. Make sure to ask HR what
type of coverage your employer will provide, for how long, and what the costs will be to
you.

Q: Will you provide a reference for me?

While you may not be thinking about obtaining references from your current employer
when you first learn that you’ve been laid off, it’s vital to explore this topic with your
boss as soon as possible. Prospective employers will want to speak directly with
your references before extending an offer to you, so be sure to line up your
recommenders before your last day on the job. (Keep in mind that most employers
prefer a conversation with your references over a written letter.)

Another proactive step is to make sure that you have the collected contact information
for managers and colleagues from your current company from whom you plan to
request references. If you have a LinkedIn account, send these key connections an
invitation to join your network on the site so that you can stay in touch. 

Q: How can I get copies of my performance reviews and by when?

If you haven’t saved copies of your previous performance reviews, ask your employer to
send them to you before your last day. Having concrete examples of your
accomplishments and words of affirmation from your manager in writing will provide
invaluable details that you can draw on when updating your resume and LinkedIn
profile.

Q:  What will happen to my 401(k)?

If you are high-income earner and can afford to funnel more toward your long-term
savings, ask your employer if you can contribute the maximum amount to your 401(k)
plan before your last paycheck. The maximum amount an individual can contribute in
2020 is $19,500 for people under 50 years old and $26,000 for those 50 and older.
/
What happens to your retirement plan after you leave the company varies depending on
the type of plan you have. Ask your employer what your options are, and consult with
your accountant or financial advisor.

Losing your job, even when the reason has nothing to do with you, can bring feelings of
loss, powerlessness, and grief. By asking your employer the questions above while
you’re still employed, you can regain a sense of agency and learn what you need to do to
proactively take care of yourself at the same time.

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purchase is the best way to support the creation of these resources.

Susan Peppercorn is an executive career transition coach and speaker. She is the
author of Ditch Your Inner Critic at Work: Evidence-Based Strategies to Thrive in Your
Career. Numerous publications including the New York Times, Wall Street Journal, Fast
Company, the Boston Globe, and SELF Magazine have tapped her for career advice. You can
download her free Career Fit Self-Assessment and 25 Steps to a Successful Career
Transition.

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4 COMMENTS

Sharon Summerfield 3 months ago

Great article capturing some key pieces. It is also important to ensure that the organization laying you off has
completed all the documentation correctly. Reach out early to have this rectified sooner than later.
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