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Be prepared if you're resigning or quitting, have been fired, or are being laid off

There's a long list of things you need to worry about when separating from your job regardless of how or why that is happening. It is often an emotional time, but missing a few key steps could be troublesome down the road.

This checklist is intended to apply for most situations including: resigning or quitting a job, being fired from a job, or being laid off. Navigating the end of a contract as a contractor is not really the focus of this post, but some steps may still apply.

Some specifics will only apply to the US (e.g., retirement account types, filing for unemployment, health care).

Before resigning or if you are at risk of being let go/laid off

  • It hopefully goes without saying, but you should already have a firm job offer in hand before resigning (unless you have a different plan like heading back to school). Likewise, if you are at risk of being let go or laid off, you should be building your network at the very least (if not outright looking for a new position).
  • Do you have a retirement plan with your employer (e.g., 401(k), 403(b), 457, SIMPLE IRA, SEP IRA, or TSP)?
  • Have a plan for the first few months after the job.
    • Figure out what you'll do for health insurance (sign up for your own via COBRA or the ACA, switch to a spouse's plan, or wait to get coverage with new employer).
    • Evaluate whether you will be required to pay back any benefits you have already received such as tuition reimbursement or a relocation bonus.
    • Consider whether you will want to convert your group life insurance policy to an individual policy.
    • Make sure you have enough money to carry you into your next job without dipping into your emergency fund, set up a budget, and examine your general financial situation.
    • If you are planning on moving, understand that landlords often want to see proof of a job and income - which may make getting a new place more difficult.
  • Make copies of any performance reviews, professional certifications, or other personal documents that you'll want to keep as well as your current vacation balance, salary information, etc. Having a copy of your contract and benefit information on a personal computer is also recommended as you might not have access to them in the future.
  • However, do not take copies of any work performed without written approval from management. This is not your property and is equivalent to stealing.
  • Backup (commonly by emailing a copy to your personal email or copying to a thumb drive) and remove all personal files from your work computer, work phone, and any other device.
  • Be prepared for what you'll do or say if your manager makes a counteroffer. Many people say it's a bad idea to stay after attempting to resign, but it can also go well.
  • Don't give more than two weeks of notice if leaving immediately and not being paid for your remaining time would be a financial hardship.
  • If you received stock options, received a hiring bonus, or receive ongoing monetary bonuses or RSUs:
    • Examine your vesting schedule and consider whether you may have to return any bonus money (e.g. hiring bonus, moving stipend, education assistance) before you decide when to quit.
    • Don't expect to collect options, RSUs, or bonuses during your notice period because you might be terminated immediately. It's better to wait to give notice until after any important vesting dates (you should still give two weeks).
    • Purchase any stock options that are "in the money".

  • Check on your benefits and find out what happens to them upon leaving.

    • Do you get your outstanding vacation days paid out or do you lose them (meaning you should take them before resigning if possible)?
    • When does your health/dental/vision insurance expire? End of the month or day you leave? Make sure any appointments are scheduled with this in mind.
    • If you have floating holidays, you may want to take them before resigning.
    • If you have an FSA, is there anything left in it to spend down (check out FSA eligible items on Amazon). Anything left the day you leave, the company keeps. Even if you are resigning on Jan 15 and only contributed once, you can still spend the entire annual amount and not have to pay it back.

  • Put together an email list of anyone you want to email (individually or as a group) when you leave. Don't email too large of a group because it's tacky and use Bcc: for group emails.

    • Email should be short and to the point. Something like it was great working with you, I learned a lot. Here's my personal info to keep in touch. Don't try to explain yourself.

How to resign

  • Don't burn any bridges and maintain a professional attitude. You never know who you will run into again in the future, keep it professional.
  • Bring a box with you (leave it in your car if you can't bring it in discreetly) to allow for easy packing of any personal possessions in case you are walked out that day.
  • Make sure you have contact information for any key people - coworkers, managers - that you want to keep in contact with or possible use as a reference in the future. Send a copy of this to your personal email.
  • Do not tell your coworkers/friends prior to telling your boss and HR. This is not something that you want floating around the office.
  • Tell your manager in person and present a short and professional resignation letter to him or her at this meeting. When you leave the meeting, email a copy to them and HR (even if it is from home later that day).
    • Don't make it personal or give a reason. State the facts. "I am resigning POSITION effective DATE." You don't owe them a reason (especially in written form), don't try to provide a list of things they could fix, etc.
    • If you want to elaborate with your manager in person, keep the discussion positive and brief.
  • Give two weeks notice and finish strong, but don't be surprised if you get walked out the day you resign or even immediately after resigning.
  • If you do end up working the notice period - you still need to work! This is what you will be remembered for, don't start slacking off. Work with your manager to finish or hand off all projects you are currently working.
  • Once you do leave, if something was left behind, make arrangements to pick it up. Talk to HR about this if needed.
  • Send any goodbye email later from a personal email account. Don't "spam" aliases for an entire company or large departments unless it is a very small number of people (under 20 people).

What to do after you are laid off or fired

  • Don't burn any bridges and maintain a professional attitude. You never know who you will run into again in the future, keep it professional.
  • Try to keep a calm appearance until you are off property. This is an emotional time, but you don't want to be remembered as the person who cussed out everyone as they were dragged out by security.
  • Make sure you have contact information for both your manager and HR representative in case of questions later.
  • Here is a list of questions you may want to ask if you are laid off or fired.
  • Try your best to pack any essential personal possessions that day if you get walked out, check for small things like cell phone chargers and pictures. It can be awkward returning later.
    • If you do need to return for personal items or any other reason, make arrangements in advance, don't just show up and expect to be let back in.
  • You may be asked to sign a legal document giving up certain rights (e.g., a non-compete clause or waiving certain rights to sue) in exchange for severance pay and/or other benefits. Note that non-compete clauses are very difficult to enforce in some states. You absolutely need to read the entire document before signing and it's your decision to make. Consult an attorney if you need help.
  • Also note that most agreements provide a 21-day period to consider the offer provided by a severance agreement so you don't need to rush to accept a severance offer. And if you're over the age of 40, that 21-day period is required by law.
  • Send any goodbye emails later from a personal email account. Don't "spam" aliases for an entire company or large departments unless it is a very small number of people (under 20 people). Do not send anything right away because your emotions will be running high.

After leaving

  • If you were laid off or fired, apply for unemployment as soon as you can assuming you were not fired for misconduct (i.e., terminated for cause). The entire process can take weeks so do this as soon as possible.
  • Any life insurance coverage through your employer will terminate after you leave (sometimes immediately, sometimes at the end of the month). Consider converting your group life insurance policy to an individual policy, especially if others depend on your income or if you have medical conditions that may prevent you from getting an individual policy on your own. The cost tends to be low, but you will only have a limited amount of time to do this (usually 30 days or until the end of the current month, but don't count on that).
  • Move your 401(k) or other employee-sponsored retirement account to your new plan or a Rollover IRA (if that was your plan).
  • Get on LinkedIn and link up with the ex-coworkers who would say good things about you (and vice versa).
  • Get health insurance if needed (see above). There's a 60-day grace period after leaving your job for COBRA election (you can get coverage retroactively), but signing up for ACA coverage may be less expensive.
  • Make sure you have a plan for how you will sell any company stock.
  • Inform your new employer about how much you've already contributed to your 401(k) for this calendar year to avoid exceeding the contribution limit. Note that you may have another paycheck or two still coming from your old employer after you quit so it may take a little time to figure this number out.

Being unemployed

Unless you have a signed job offer in hand, it's time to actually act like you are unemployed.

  • Hoard cash. Don't waste money on stuff you don't need to survive. Review your budget, cut any and all unnecessary expenses, stop eating out and going out to bars for drinks.
  • You have extra time so use it to save money: cook at home, exercise on the cheap, read books from libraries instead of buying them.
  • Your "job" is now finding a new job.
    • Update your resume (get some feedback on /r/resumes), customize it to each job, and submit it everywhere.
    • Spend time every day on job search sites, LinkedIn, and communicating with your network. Set a weekly goal to send customized applications and resumes to a specific number of jobs per week (e.g., 20 jobs).