The Difference Between Being Laid Off, Furloughed and Terminated

If you’re reading this, there’s a good chance you’ve recently lost your job. You’ve probably already been applying for interesting job opportunities and maybe you’ve even been called in for an interview! 

Losing a job doesn’t have to sideline you for weeks or months, not even in this current climate. Companies are hiring and interviews are happening again, which means you’ll need to know how to discuss your job status and the circumstances around it in a way that’s both professional and positive. 

Depending on whether you’ve been laid off, furloughed or terminated, you’ll want to address it in a different way. First, let’s talk about what each of these terms mean, then I’ll teach you how you can steer the conversation in a productive way during your next interview.

Let’s Talk Semantics

So, what do each of these terms mean, exactly? Let’s take a closer look:

Laid Off

Typically, layoffs happen when a company needs to cut costs quickly and on a large scale. A lay off might happen because the business closed or because your job or shift was eliminated. It also might mean that there wasn't enough work for you (or your department) to do anymore, although this is normally referred to as a reduction in force, not a layoff.

Not every layoff is permanent, but many are. Companies may choose to offer employees a severance package, and employees may be able to continue receiving employer-provided benefits in some cases. During the coronavirus, we’ve seen mass layoffs at a lot of travel-related companies like United Airlines and Lyft. 

Furloughed

A furlough is a little different from a layoff because although you are paid less (or not paid at all) for the duration of the furlough, you are technically still employed. Typically, there is a set end date to the furlough, but not always.

Generally, people get to keep their benefits during this period, and you may also be able to collect unemployment benefits. Each situation and state is a little different, and sometimes you won’t be eligible unless your pay is actually cut completely. 

Terminated

People get terminated (or “fired”) for many reasons. Sometimes, it’s based on your job performance. Sometimes it is a serious mistake or a series of behaviors that lead to the termination. Unlike being laid off or furloughed, being terminated rarely has anything to do with the company’s finances.

When you are terminated, there is no expectation that you will resume your employment at that company in the future. You are also not going to be offered any kind of severance, although you may be eligible for unemployment benefits, depending on your state and the reason for your termination.

How to Address Each in an Interview

It's always a good idea to be very direct about your past job history in an interview, and that means addressing how and why you lost a job. Here are my top tips to do that:

Laid Off

If you were laid off, you will want to share the reason why the layoff happened. Even if it was a financial decision, the recruiter or hiring manager will likely want to know why your position or department was let go.

Make sure you are able to speak clearly about your job performance to show that you were effective in your role before the layoffs happened to ease their mind, and then of course, be sure to outline how you plan to bring that same level of value to their company as well.

Furloughed

Furloughed employees are able to seek permanent employment elsewhere (they are NOT allowed to seek temporary employment in most cases) but as soon as you are hired at another company, any benefits you are receiving will end. 

If you are asked about the furlough, you can be honest and explain that it was a financial decision. Most recruiters and hiring managers won’t have a negative reaction to hearing someone was furloughed, as long as you’re clear and upfront about what happened.

Terminated

It can be a little scary to talk about a termination in a job interview. Resist the urge to bash your past employer and be honest about what led to your termination. Don’t drag out the conversation. Keep your answers short, direct, honest, and productive.

As soon as you are able, pivot the conversation and explain how you’ve addressed the issue personally and how eager you are to bring your unique skills to the new role. Always end on a positive note and if you feel nervous, spend extra time practicing your response beforehand.

Interested in receiving more one-on-one help? Our “From Failed to Nailed” interview coaching program is ideal for those who want to increase their confidence and land their dream opportunity. Click here to learn more!