{"id":3139,"date":"2022-12-09T16:08:09","date_gmt":"2022-12-09T16:08:09","guid":{"rendered":"https:\/\/www.adzuna.com\/blog\/?p=3139"},"modified":"2023-02-27T14:23:53","modified_gmt":"2023-02-27T14:23:53","slug":"what-you-need-to-know-about-layoffs","status":"publish","type":"post","link":"https:\/\/www.adzuna.com\/blog\/what-you-need-to-know-about-layoffs\/","title":{"rendered":"Just been laid off? What you need to know if you\u2019ve lost your job"},"content":{"rendered":"

For millions of Americans, inflation is causing a cost of living crisis, and as numerous businesses fold, many people are fearing for their jobs. If you have been laid off, or your employer has indicated that it\u2019s on the cards, here\u2019s what you need to know.\u00a0<\/span><\/p>\n

This guide sets out to answer all the questions you might have about losing your job. From knowing what you\u2019re entitled to and your legal rights to sorting your finances and searching for a new job.\u00a0<\/span><\/p>\n

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The impact of the Covid-19 pandemic<\/h3>\n

Millions<\/span><\/a> of Americans lost their jobs during the pandemic as businesses closed temporarily or permanently.\u00a0<\/span><\/p>\n

Between February 2020, and October 2021, there were <\/span>4.2 million<\/span><\/a> fewer Americans in employment. Those in lower-income roles were the most impacted. 59% of the jobs lost from February 2020 to October 2021 were in the lowest income bracket.\u00a0<\/span><\/p>\n

The US lost substantially more workers than the EU, in part down to the EU implementing numerous job retention schemes whilst the US focused efforts on economic stimulation checks. About <\/span>9.6 million<\/span><\/a> U.S. workers (ages 16 to 64) lost their jobs in the first three quarters of 2020 (compared to those same quarters in 2019). In the EU, only about 2.6 million workers lost their jobs, despite the EU having a population of about 100 million more people.\u00a0<\/span><\/p>\n

In general, job losses and higher rates of unemployment impact persons of color, disabled people, and women more. You can find out more about these inequalities <\/span>here.<\/span><\/a>\u00a0<\/span><\/p>\n

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Should we be worried about major layoffs at Twitter, Meta, and Disney?<\/h3>\n

Major players have been announcing layoffs for a number of months. Meta announced in November that it will lay off <\/span>13%<\/span><\/a> of its workforce (11,000 employees), Twitter plans to cut its workforce in half, and Disney has implemented a hiring freeze.\u00a0<\/span><\/p>\n

Even if you aren\u2019t an employee at one of the firms that have announced that job losses are looming, it\u2019s a scary time to be an employee, especially if your employer has tended to follow trends set by large multinationals.\u00a0<\/span><\/p>\n

Middle managers and white-collar workers seem to be most at risk with a number of companies, including Walmart and Ford, announcing cuts to their head office staff, rather than to their employees in factories or stores.\u00a0<\/span><\/p>\n

Although layoff rates remain low, economists and recruiters are predicting a \u201c<\/span>middle-management recession<\/span><\/a>\u201d.<\/span><\/p>\n

Meanwhile, blue-collar workers, like construction workers, who in previous economic downturns have been the first roles to be cut, are less likely to be laid off as there are still substantial talent shortages.\u00a0<\/span><\/p>\n

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I\u2019ve just been laid off, what do I need to know?<\/h3>\n

In the US there are very few laws to protect the employee. Virtually all employment situations are \u201cat-will\u201d which means that an employer can terminate your contract at any time for any reason (or for no reason at all!)<\/span><\/p>\n

This isn\u2019t very reassuring, we know, but there are certain ways to dispute layoffs, mainly if discrimination has occurred.\u00a0<\/span><\/p>\n

If you believe discrimination has occurred you would have to show that more people have been laid off who are part of one of the below groups than those who are not.\u00a0<\/span><\/p>\n

Age: <\/b>If you\u2019re over the age of 40 and believe that your employer is severing your contract due to your age, they could be in breach of the Age Discrimination in Employment Act of 1967. Additionally, under the <\/span>Older Workers Benefit Protection Act<\/span><\/a> workers over 40 are entitled to severance pay and have 21 days to consider a severance offer.\u00a0<\/span><\/p>\n

Race, gender, religion, sex, pregnancy, and ethnicity:<\/b> If you think you\u2019ve been discriminated against for any of these reasons, <\/span>Title VII of the Civil Rights Act of 1964<\/span><\/a> protects your rights to fair employment and equal opportunities in the workplace.\u00a0<\/span><\/p>\n

Disability and health: I<\/b>f you believe that you\u2019re being fired because you\u2019re disabled, the <\/span>Americans with Disability Act (ADA)<\/span><\/a> of 1990 prohibits discrimination.\u00a0<\/span><\/p>\n

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There are a few other reasons that a layoff is unlawful. These are:\u00a0<\/span><\/p>\n

If a layoff is done in retaliation. <\/b>For example, if an employee was whistleblowing on an employer and reported illegal or unethical behavior and then had their contract terminated, your employer would be breaking federal whistleblower laws. Find out more <\/span>here.\u00a0<\/span><\/a><\/p>\n

If a layoff is due to you caring for a family member who is ill. <\/b>The Family Medical Leave Act (FMLA)<\/span><\/a> entitles eligible employees to 12 weeks off work unpaid (or 26 if you\u2019re caring for a service member) to care for a family member. During this time their job is protected and their health insurance coverage should continue.<\/span><\/p>\n

If your employer has over 100 employees.<\/b> Employers with 100 or more full-time employees (not counting workers who have spent fewer than 6 months on the job) have to provide a 60-day notice period to employees in the following circumstances: worksite closing affecting 50 or more employees, or a mass layoff affecting at least 50 employees and 1\/3 of the worksite\u2019s total workforce or 500 or more employees at the single site of employment during any 90-day period.\u00a0<\/span><\/p>\n

However, if the business is faltering, there are unforeseen business circumstances, or a natural disaster has occurred then the company is exempt. Find out more about the Worker Adjustment and Retraining Notification Act (WARN), <\/span>here<\/span><\/a>.\u00a0<\/span><\/p>\n

If you believe that your employer is in breach of any of the above, your first step is to consult with your local attorney or contact the <\/span>Equal Opportunity Employment Commission<\/span><\/a>.\u00a0<\/span><\/p>\n

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Will I get severance pay?<\/h3>\n

Not necessarily. Severance is at the discretion of your employer and based on internal company policies. If you are offered a severance package, it is not unusual to negotiate.\u00a0<\/span><\/p>\n

There is however no legal requirement for your employer to offer severance. You can find out more about severance <\/span>here<\/span><\/a>.\u00a0<\/span><\/p>\n

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Will I serve a notice period?<\/h3>\n

Unless you are over 40 or currently working at a company with 100 or more employees a notice period is not compulsory. However, as standard, most employers provide two weeks’ notice.\u00a0<\/span><\/p>\n

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If you\u2019ve lost your job and are struggling financially<\/h3>\n

Losing your job during a cost-of-living crisis can feel incredibly overwhelming, but there is support available.\u00a0<\/span><\/p>\n