If you've just been laid off, deal with the deadlines first: get everything about your exit in writing, apply for unemployment benefits now, and protect your health cover. Everything else, from your CV or résumé to telling friends, can wait a few days.
This guide walks you through the first 24 hours, the first week and the first month. Rules on benefits, notice and health cover differ by country (and in the US, by state), so each point says where it applies. This is general information, not legal or financial advice.
If you're struggling right now, you're not alone and it isn't a verdict on you. In the US you can call, text or chat 988 any time. In the UK, Samaritans answer free on 116 123, day or night. Elsewhere, your local health service can point you to a crisis line. There's more on looking after yourself in our guide to job search depression.
Your laid-off checklist at a glance
| When | What to do | Why it matters |
|---|---|---|
| First 24 hours | Get the decision, last day, final pay and severance terms in writing. Save personal files and contacts you're allowed to keep. | Access often ends fast, and you'll need the details for benefits |
| First 24 hours | Don't sign anything yet | Severance agreements often ask you to give up legal claims |
| First 3 days | Apply for unemployment benefits | Applying late can cost you money (Canada says so explicitly) |
| First week | Choose health cover (US: COBRA or Marketplace) | Strict election windows apply |
| First week | Build a bare-bones budget | You'll make calmer decisions knowing your runway |
| First 2 weeks | Decide what to say and tell people | People who know your work can refer you or tell you about openings |
| Weeks 2 to 4 | Update your CV or résumé and LinkedIn, pick target roles, set a weekly routine | A plan beats volume |
What should you do in the first 24 hours after being laid off?
Get the facts in writing and sign nothing. Then take a breath. You don't need to have a plan by tonight.
Ask for these in writing (email is fine):
- The reason for the decision (laid off, made redundant, role eliminated) and your official last day
- Final pay date, and what happens to unused holiday or PTO, bonus, commission and equity
- Any severance or redundancy pay, the agreement, and how long you have to review it
- When your health, life and other insurance ends
- Whether you'll get a reference, and who gives it
- The paperwork you'll need for benefits (in Canada, your employer issues a Record of Employment, which Service Canada needs to decide your EI claim)
Sample wording (example): "Thank you for letting me know. So that I can plan, could you send me in writing my last working day, final pay date, details of any severance and the deadline to respond, and the date my benefits end?"
Save what's yours. Personal contacts, payslips, your contract and performance reviews. Don't take confidential company data. Access can end quickly.
Don't sign on the spot. A severance agreement usually trades money for a release of legal claims. You're allowed to read it properly, and in some cases you'll have a legal review period. Our guide on how to negotiate severance covers what's negotiable and what to check.
If the news came with little or no warning and your employer is large, read about the US WARN Act. If you're not sure whether you were laid off or fired (it matters for benefits), see laid off vs fired.
Back in the market? Show employers what you can do
Practise on job simulations of the real work, see where you lost marks, and walk into interviews with proof. Free to start, no card.
How do you apply for unemployment benefits after a layoff?
Apply as soon as you can, through the official government service where you worked. Each country runs this differently.
| Country | Where to apply | What the official source says |
|---|---|---|
| US | Your state's unemployment insurance programme | It's a joint state-federal programme for workers who lose their job through no fault of their own, and each state sets its own rules. File with the state where you worked and contact it as soon as possible. |
| UK | GOV.UK: New Style JSA and/or Universal Credit | New Style JSA can be paid for up to 182 days and usually needs Class 1 National Insurance contributions in the previous 2 tax years. You could get Universal Credit at the same time or instead (it's means-tested; £16,000 savings limit). |
| Canada | Service Canada, Employment Insurance (EI) | For people who lost their job through no fault of their own, with 420 to 700 insurable hours depending on region. Apply right away: apply more than 4 weeks after your last day and you may lose benefits. |
| Australia | Services Australia | Check servicesaustralia.gov.au for income support while you look for work. |
| India | No single national scheme for most private-sector workers | If you have an EPF account, check the current withdrawal rules on epfindia.gov.in before you withdraw. |
In the US, unemployment benefits are generally taxable income. You can ask for federal tax to be withheld (Form W-4V) so you don't face a bill later.
Being fired, quitting or taking severance can all affect eligibility, and the rules differ by country and state. Our guide can you get unemployment if you get fired covers each case. If you're in the UK and were made redundant with 2 years' service, see statutory redundancy pay.
What happens to your health insurance when you're laid off?
In the US, your job-based cover usually ends, and you have two main routes: COBRA or the Health Insurance Marketplace. In the UK, Canada and Australia, public healthcare doesn't depend on your job, though you may lose private cover through work.
US options, from the Department of Labor's COBRA guide:
- COBRA lets you keep your employer's plan, usually for up to 18 months after a job loss. It generally applies to employers with 20 or more employees. You usually pay the full premium, and the plan can charge up to 102% of its cost.
- Election window: the plan must give you at least 60 days to elect COBRA, counted from the later of the election notice or the date your cover would end. You then get at least 45 days to make the first payment.
- Marketplace: losing job-based cover lets you enrol in a Marketplace plan within 60 days before or after the loss, and you may qualify for a tax credit. Being offered COBRA doesn't make you ineligible.
- Medicaid and CHIP: you can apply any time.
- Watch out: if you drop COBRA early without a new special enrolment reason, you generally have to wait for open enrolment to get Marketplace cover.
The Department of Labor notes that an employer may agree to cover some or all of the premium as part of your separation, so it's worth asking for in severance talks.
UK, Canada, India: check any private medical insurance through work and ask when it ends. In India, if your health cover came through an employer group policy, ask the insurer whether you can move to an individual policy.
What should you do with your 401(k) or pension after a layoff?
Usually, nothing in a hurry. Your savings stay yours, and you have time to compare options.
In the US, if you take money out of a retirement plan and want to keep it tax-sheltered, the IRS gives you 60 days to roll it over into another plan or IRA. A plan distribution paid to you is subject to 20% mandatory withholding, even if you intend to roll it over, so a direct rollover from plan to plan is simpler. Ask your plan administrator for the options in writing.
In the UK, ask your pension provider what happens to your workplace pension when you leave. In India, check EPF rules on epfindia.gov.in before withdrawing. Anywhere, talk to a regulated adviser or your government's free pension guidance service before cashing out. This is general information, not financial advice.
How do you make your money last after losing your job?
Work out your runway, cut what you can without making life miserable, and contact lenders before you miss payments.
- Money in: final pay, severance, holiday pay, benefits, any partner income.
- Must-pays: housing, utilities, food, insurance, minimum debt payments, phone and internet.
- Pause the rest: subscriptions, big purchases, new commitments.
- Call lenders and your landlord early. It's easier to ask about hardship options before you fall behind.
- Divide savings plus expected income by monthly essentials. That's your runway in months, and it tells you how picky you can afford to be.
If money is very tight, a short-term, temporary or contract role can buy time. Our guide on how to get a job fast covers those routes.
How do you tell people you were laid off?
Briefly, factually and without blame. Layoffs are common, and you don't owe anyone a long explanation.
Family: be honest about the money picture and what you need from them.
Your network (example message): "My role at [company] was eliminated last week as part of a wider layoff. I'm looking for [type of role] in [field or location]. If you hear of anything, or know someone I should talk to, I'd be grateful."
Employers: keep it to one or two sentences and move to what you can do. See how to explain being laid off in an interview and the exact wording to use on application forms in reason for leaving a job.
LinkedIn: whether to post publicly or switch on Open to Work is your call. Our LinkedIn Open to Work guide weighs it up.
How do you restart your job search after a layoff?
Take a few days to steady yourself, then treat the search as a routine with a weekly plan.
Week one or two: decide what you're aiming for. Is it the same role somewhere else, a step up, or a change? If you're unsure, start with what career is right for me. If you're thinking of switching fields, read how to change careers, or the age-specific guides for a career change at 40 and a career change at 50.
Fix the basics. Update your CV or résumé with recent results. Add your end date honestly; a recent layoff is not a red flag. If you've been out a while, see how to handle an employment gap.
Set a weekly system. A target list of companies, a tracker, a few tailored applications, a few conversations with people, and follow-ups. Our job search strategy guide lays out a full week.
Prove you can do the work. After a layoff, employers want reassurance that your skills are current. Being able to show it beats saying it. You can practise on a job simulation of the real work in your target role, get a scored report showing where you lost marks, and build a skills profile you can share. It's free to start.
Close skill gaps deliberately. If listings keep asking for something you lack, pick one or two skills to learn and show them in a small project.
If it isn't working after a few weeks, find where it's breaking: no replies, no interviews or no offers each have a different fix. See can't find a job. If you're moving into a new field, how to get a job with no experience has entry routes.
What if you think you'll be laid off but haven't been yet?
Prepare quietly: save payslips and reviews, update your CV or résumé, build savings and reconnect with your network. Our guide to the signs of layoffs lists the warning signs and what to do about each.
FAQs
Can I collect unemployment if I get severance?
It depends on where you live. In the US each state decides how severance affects benefits. Ask your state programme and read our guide on unemployment after losing your job.
How long do I have to sign up for COBRA?
In the US, at least 60 days from the later of your election notice or the date your cover would end, according to the Department of Labor.
What is the difference between being laid off and being made redundant?
In the US, "laid off" usually means your job ended for business reasons. In the UK, redundancy is the legal term for a role no longer being needed, and a "lay-off" can mean being temporarily sent home without work. See laid off vs fired and the glossary entries on redundancy and severance pay.
What next
Give yourself a few days, clear the deadlines above, then pick one target role and start preparing for it. When you're ready to show employers what you can do, Cohesyve lets you practise on simulations of real work, see your gaps in a scored report and get matched to jobs. Free to start, no card.
Sources
Official pages, checked 2 November 2026:
- US Department of Labor: Unemployment insurance
- US Department of Labor, EBSA: COBRA and An Employee's Guide to Health Benefits Under COBRA
- IRS: Topic 418, Unemployment compensation and Rollovers of retirement plan and IRA distributions
- GOV.UK: Redundancy: your rights, New Style JSA, Universal Credit eligibility
- Government of Canada: EI regular benefits eligibility and how to apply
- 988 Suicide & Crisis Lifeline and Samaritans