You’ve been laid off. Do this right away to protect your finances and reputation
Losing your job was probably the last thing on your mind.
If you’re in a layoff situation, these strategies can help lessen the impact to your finances.
Take a few days to process, and get support
It feels raw, traumatic and unfair. Being laid off is a total system shock. Take a moment to process the whirlwind of emotions. Park negative self-talk and just let it all out. As soon as you are able, reach out to friends, family or your therapist for support, go for long walks and take 10 deep breaths every hour. You’re going to need to get your calm on in order to do these next steps.
Ask for a letter that explains the layoff
If you were not at fault, this letter should state why your role was eliminated; restructuring, economic circumstances, relocations, mergers, buyouts, and so on. This is helpful for you when interviewing for new jobs and you need to explain your previous termination. Most farewell packages automatically include this letter, but if you don’t get it, ask for it.
Track down your Record of Employment for your Employment Insurance application
You may be eligible for Employment Insurance (EI) depending on how long you worked at your previous employer. And, your Record of Employment is a part of the application. Sometimes employers file these electronically. Other times, they are mailed.
Hop online and visit My Service Canada to start your EI application. EI payments are taxable and are paid to you while you are unemployed for a set period of time. I highly recommend using the EI calculator at Canada.ca to get clear on your payments. For most people, the basic rate is 55 per cent of their average insurable weekly earnings, up to a maximum amount (maximum yearly insurable earnings amount is $60,300). This means that you can receive a maximum amount of $638 per week.
You might even qualify for EI if you were fired (so long as it wasn’t a misconduct situation).
Get clear on your health benefits
What’s happening to your health benefits? Will they be extended until the end of the month? Are they immediately disappearing? Is there a possibility that coverage can be extended, even if you have to pay for part or all of it? What are your needs for the next few months? Out-of-pocket health and pharmacy costs can add up, so plan carefully. You might need to get independent health insurance.
Have an expert review your severance package
If you got a package, do yourself a favour and review it carefully with someone who has employment law experience. Chances are that if your employer has a legal team that reviewed it, what you’re offered is what you’re going to get, but there can be room to negotiate. And, if you weren’t offered anything at all, and feel you should have been, definitely seek legal counsel.
In some circumstances you may have been inappropriately targeted for a layoff due to your age, gender, origin or more. If you suspect wrongdoing has taken place, seek legal counsel and you can use the labour standards, labour rights or human rights legislation Acts or Regulations to file a complaint.
Get the scoop on what happens to your pension and savings accounts through work
Do you have to transfer this money out? How fast do you need to take action? Are there penalties for transferring the money? I highly recommend working with your financial planner, money coach or adviser to carefully review what needs to be done with your work savings.
Reduce your costs to essentials only
The immediate smart money move you’ll want to make is to waste nothing. Every dollar counts towards keeping you and your family afloat during this lean time. Trim back. Cut out. Essentials only. Get deep into planning your budget and see about paying off any high interest credit card debt to save. And, this probably goes without saying but, postpone major purchases.
Start hunting and networking
The sooner you update your LinkedIn profile and reinvigorate your resume, the better. Don’t do this part in isolation. If a career counsellor was a part of your exit package, use their services. If you have a coach in your life that does this kind of thing, hire them for a session. If you have a friend who is a pro at all things job hunting, ask for their help. Then, line up your references and LinkedIn recommendations and start applying for jobs. I also think this is the perfect time to press the reset button and ask yourself if there are other careers you might be interested in. Be open and try your best to have fun exploring.
Losing your job is personally and financially stressful. So, try your best to take care of yourself with rest, exercise and healthy eating. It will make a big difference in helping you succeed with this next career chapter.
This article was originally published in The Star. Lesley-Anne Scorgie is a Toronto-based personal finance columnist and a freelance contributing columnist for the Star.
