What to Do After a Layoff: A Week-by-Week Action Plan

Being laid off triggers a specific kind of panic: the sudden realization that dozens of decisions need to happen at once, and you have no idea which ones are urgent and which can wait. Health insurance. Severance. LinkedIn. The mortgage. Unemployment. Your boss's reference. All of it hits simultaneously.

This is a concrete action plan — a sequence designed to reduce that overwhelm into specific tasks by day and week.

The First 48 Hours: Do Not Sign Anything Yet

The termination meeting often ends with paperwork. If your employer is offering a severance agreement, resist the pressure to sign it on the spot. In the US, workers over 40 have a federally protected 21-day review period under the Older Workers Benefit Protection Act (OWBPA). Even if you are under 40, there is no legal requirement to sign immediately — take the full review window your employer offers.

During this window, review the agreement for:

• Non-disparagement clauses — you agree not to say negative things about the company (standard, but know it's there)
• Non-compete restrictions — these vary widely by state and may limit where you can work next
• What you are waiving — severance agreements typically require you to waive the right to sue for wrongful termination
• Whether the severance offer is negotiable — in most cases, it is

Do not post on LinkedIn, do not email angry farewells, and do not delete files or wipe your work laptop. Any of these actions can be used as grounds to rescind your severance.

UK note: If you receive a Settlement Agreement (the UK equivalent of a US severance agreement), your employer is legally required to contribute toward your legal review costs — typically around £500. You must get independent legal advice for the agreement to be binding.

Day 1: File for Benefits Immediately

Most people wait a week or two before filing for unemployment benefits, not realizing that waiting periods typically begin only after you file. In the US, most states have a one-week waiting period before benefits start — but that clock does not start until you apply. Every day you delay is a day of benefits lost.

File on the same day you are terminated, or the morning after. You will need:

• Your Social Security number
• Your employer's address and payroll contact
• Dates of employment
• Your reason for separation (layoff, not resignation or termination for cause)

Canada: File for Employment Insurance (EI) at canada.ca within four weeks of your last day. In 2026, EI pays up to $729 per week based on your insurable earnings.

Australia: Apply for the JobSeeker Payment through Services Australia. There is a one- to four-week waiting period depending on your liquid assets and any redundancy pay received.

UK: Claim New Style Jobseeker's Allowance through GOV.UK. This contribution-based benefit pays approximately £92 per week for up to 26 weeks.

Singapore: If you earned under S$5,000 per month, you may qualify for the new SkillsFuture Jobseeker Support Scheme, which provides up to S$6,000 total over six months.

Day 2: Audit Your Health Insurance

If you are in the US, your employer-sponsored health coverage typically ends on your last day of employment or at the end of that month. COBRA allows you to continue your current plan for up to 18 months, but you pay the full premium — employer share included. For individuals, this runs approximately $400–$700 per month in 2025; for families, $2,000–$3,000 per month.

Before defaulting to COBRA, check the Healthcare.gov Marketplace. Losing job-based coverage is a qualifying life event that triggers a 60-day Special Enrollment Period. Depending on your income during unemployment, you may qualify for substantial subsidies that make a Marketplace plan cheaper than COBRA.

Act within 60 days of losing coverage. After that window closes, you are uninsured until the next Open Enrollment Period.

Canada: Group benefits typically end on your last day. Most policies include "conversion privileges" — the right to convert your group plan to an individual plan without a medical exam if you apply within 30–60 days.

Australia: If you have private health insurance, contact your insurer immediately to ask about financial hardship provisions. Most Australian insurers allow you to pause premium payments for 2–24 months during periods of unemployment without losing your Lifetime Health Cover status.

Day 3: Audit Your Finances

Download the last three months of bank and credit card statements and go through every recurring charge. Cancel everything that is not essential — streaming services, gym memberships, software subscriptions you do not need immediately.

Then apply the "Four Walls" framework to your remaining expenses: Food, Utilities, Shelter, Transportation. These four categories get paid first, every month, without exception. Credit card payments, personal loans, and subscriptions are negotiable or deferrable. Your rent, electricity, and groceries are not.

Call your lenders proactively. Many mortgage servicers have hardship programs that allow payment deferrals or reduced payments for 3–6 months. Utility companies often have similar programs. The time to ask is before you miss a payment, not after.

Week 1: Update Your Resume Before You Lose Access to Data

The most time-sensitive professional task is updating your resume and LinkedIn profile while you can still access your work systems for performance metrics, project names, and dates. Once your access is revoked — which can happen same-day — you lose the ability to verify specifics.

While you still have access:

1. Forward any personal performance reviews or commendation emails to your personal email (not proprietary company data or client lists — just your own performance records)
2. Document your specific accomplishments with numbers: revenue generated, costs reduced, projects delivered, team size managed
3. Connect with key colleagues on LinkedIn before the connection is severed by company email deactivation

When writing your experience bullets, use the problem-action-result format: what situation you inherited, what you did about it, what the outcome was in measurable terms.

Week 2: Work Your Network Quietly

Roughly 70–80% of jobs are filled through referrals and networking rather than public job postings. The week after a layoff is the right time to reach out to your inner circle — former colleagues, managers, clients — to let them know you are on the market.

Keep the message simple. You do not owe anyone an extended explanation of what happened. "I was part of a layoff at [company] and I'm now exploring new opportunities in [field]" is sufficient. Ask specifically: "If you hear of anything in [type of role], I would appreciate an introduction."

Avoid mass-broadcasting your layoff on LinkedIn in the first week. A targeted, personal approach generates better leads and preserves your negotiating leverage for your severance timeline.

The 30-Day Checkpoint

At the end of your first month, reassess:

• Is your severance agreement signed, or still under negotiation?
• Have you received your first unemployment benefits payment?
• Have you replaced or suspended your health insurance?
• Is your resume updated and in active circulation?
• What is your current monthly burn rate, and how many months of runway do you have?

The answers determine whether you can afford to be selective about your next role or need to prioritize speed.

Get the Full Toolkit

The Job Loss Survival Guide covers every step in this process in detail — including severance negotiation scripts, country-specific benefit comparisons for the US, UK, Canada, Australia, New Zealand, and Singapore, a 90-day financial survival budget template, and a career recovery roadmap.

Get the complete guide at /job-loss-survival-guide/