Laid Off vs Fired: Know the difference

Losing a job involuntarily is not something anyone looks forward to. It can be really tough. Haven’t we heard of so many incidents where oil and gas companies lay off thousands of employees at once? The other side of the narrative is when people are fired. In both cases, there is extreme distress. All because you didn’t take the call. I understand how this can take a toll on your mind. For those who do not have clarity on getting laid off and fired, I would like to shed some light. In the workspace, these two terms are often used interchangeably. However, they do not imply the same thing. This article would focus on all that you need to know around: laid off vs fired.

Laid off vs Fired: All that you must know

What is the difference between “laid off” and “fired”?

“Lay off refers to the suspension or termination of employment (with or without notice) by the employer or management. Layoffs are not caused by any fault of the employees but by reasons such as lack of work, cash, or material. A permanent layoff is termed as redundancy.”

When an employee is laid off, he or she is not responsible for the job loss. Generally, an organization would lay off an employee for the following reasons:

Changing business requirements

The reorganization of the workforce

A merger, de-merger or acquisition

Loss of a contract, grant, or agreement, for which the employee was hired originally

As you can see, in these cases, the employees are not at fault.

(Suggested Read: Recent Layoffs across Oil and Gas Industry)

“Firing is an act of removing someone from their job. It is about a specific individual and revolves around performance or behavior.”

An employee can be fired for the following reasons:

Poor performance

Violation of the Company’s policies

Inappropriate behavior or dishonesty

Damaging the company’s property

Any illegal step towards the company

Embarrassing the brand name in public

(Suggested Read: Signs You will be fired)

It is important to differentiate between these two situations. You need to identify the aspects of laid off vs fired in your conversations with the Human Resource Manager. For instance, in case of being laid off, you would be informed that your position is being changed, removed, or is redundant. If you are being fired, no matter how graceful the management tries to keep it, there will be a harsh underlying tone. You may expect to hear that you are unable to do the job or your conduct was found inappropriate. This won’t come as a surprise as there would be some warning from the authority.

Laid off vs Fired: What it means for your career?

Being laid off vs fired, two different ways of losing your job. Both can impact your career in different ways. Your eligibility for future employment, your career prospects, your credibility built over years of effort, or your personal brand – it can all go downhill if you are fired from the job. Getting laid off can cause an emotional breakdown and it can be hard searching for a job all over again.

But where do you stand in case you lose your job? It is important to be aware of your rights. Make sure you are informed about your compensation and benefits, the last paycheck, any support from the company or so on.

It’s a small world we live in. Anything that happens in your current job can have huge implications on your future prospects. Most importantly, you can always come back stronger and better. Being laid off or getting fired is not the end of the world.

Feel free to reach out to us if you need to understand what laid off vs fired means for your career. Nothing should you back. Explore our Career Help section for more insights.

(The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of Energy Dais.)