- Ten Most Important Things to Do When You Are Unemployed
- Do You Qualify for Severance Pay?
- Make sure you collect your accrued vacation and sick time!
- Unemployment Benefits
- Health Insurance
- Time to Relook Your Budget
- Start reaching out to your networks!
- Create a LinkedIn Profile
- Time to evaluate your career path!
- Get your resume updated!
- Decide what to do with your money!
Ten Most Important Things to Do When You Are Unemployed
Losing your job is not as easy as it affects all aspects of your life, especially finances. You will be unemployed, and without the regular income, you lose crucial benefits like your health insurance. Therefore, you need to react quickly to avoid significant problems that go with it. You need to take action by doing the following ten most essential things.
Do You Qualify for Severance Pay?
Depending on the situation and how you were laid off from work, you may qualify for severance pay. Whether the firm you worked for let you go due to staff cuts, restructuring, or other reasons accepts for misconduct, you may be eligible for severance pay. Therefore, read the employee handbook and agreement with the company and see if you are entitled to this money.
Furthermore, if the company you worked for has more than one hundred employees, the WARN Act (Worker Adjustment and Retraining Notification Act of 1988) entitles you to a sixty-day notice with mass layoffs. Therefore, if your employer does not provide it, you can claim severance.
Do not accept the first offer provided as you can negotiate the terms of the agreement.
Make sure you collect your accrued vacation and sick time!
When it comes to terminating your contract, many employers need to provide your paycheck immediately. While other employers send your last check with your regular payment, the company you worked for cannot withhold your paycheck and need to pay out your vacation and sick days, depending on the country you live in. Therefore, it is crucial to find out the law of your land or state when residing in the USA.
If you lost your job, that is not your fault you may be entitled to claim unemployment. Here the laws of every state and country can vary when it comes to claiming the benefit. Furthermore, this applies if you are looking for work and have worked for a certain number of hours earned in past jobs. However, you need to remember that this amount is taxable and equals the portion of past wages.
If you were entitled to health insurance through your employer, the chance of getting it for longer is non-existent. Therefore, you need to decide if you want to negotiate with them when discussing your severance agreement.
Depending on the country you live each act varies; however, under the COBRA of 1985 (Consolidated Omnibus Budget Reconciliation Act), you can keep your health insurance up to 18 months.
However, there is a disadvantage as you may need to carry the full coverage yourself and expensive. Alternatively, you can look at your spouse’s plan for coverage.
On the other hand, you can contact OBAMACARE Exchange for coverage as well as provide people with health insurance when losing a job.
Time to Relook Your Budget
As you will be living on less an income even when qualifying for severance or unemployment, it helps to look at your budget again. So do not go and spend the money you receive as it will not last long when searching for a new job. Look where you can cut back from canceling gym fees, stop eating out, and more.
Start reaching out to your networks!
Gather all the information you have available with your connections and inform them that you are looking for work. Advise them on the position you want to work in and ask them to keep their ears open. By doing networking off and online can help you find a new job in no time.
Create a LinkedIn Profile
With the internet, networking is made more accessible, so take advantage of making use of online tools like LinkedIn. With the site, you can connect with people you already know and make it clear that you are looking for new job opportunities. Provide enough details about your employment history and past successes. If you already have an account, it is time to update it and tell everyone that you have left the position and in need of a new one.
Time to evaluate your career path!
Now is an excellent time to decide in which direction you want to move with your career. There is no need to apply for a position right away, similar to the one you left. Take some time to think about the job you had and if you were happy with what you did. Start looking at jobs that fit your skills and a great way to change position to something you may like. You can even look for temp-jobs as it may turn into something more permanent.
Get your resume updated!
When looking for a job, your resume needs to be outstanding, as it is the key to finding work. Get your resume updated by customizing it for each job you plan on applying to showcase your skills. You can opt-in using a chronological resume to show how your career unfolded or a skills-based one if you spend most of your career in one business.
Decide what to do with your money!
If you worked with an employer for a long time, you have a retirement account that will payout. Here you need to decide if you want to leave it with the employer by leaving it in an IRA (Individual Retirement Account) or taking the money over to your new employer. Are you happy with the current investment? Then it is best to leave it in the account. However, if the business is closing down, it is best to move the money. When placing the money in an IRA account, you can always transfer it to the new employer account.
As you can see, many things play an essential part when losing your job. By following the tips, you can keep your finances on track.
Furthermore, during this time, try to clean up the social accounts that could get you into trouble as many employers investigate your reports.
Moreover, stay connected with your coworker as you need references to help get you that new position you are dreaming of. By doing this, you keep your networking going, and it helps to have key contacts at a later stage.
Now is the time to brush up on your skills and build industry knowledge as well, especially in the new career you plan on following. Lastly, apply for jobs strategically and avoid sending your resume to any employer.
By doing this, it gives you time to customize your resume and cover letters according to the jobs you apply for. We hope that the information here helps you to find peace of mind when losing your job.
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