Layoffs take place when a corporate budget dictates cutting workers. A layoff is prompted for economic reasons and does not necessarily reflect negatively on the employees affected in the process. Firings occur when a worker or workers fail to perform on the job, display improper workplace behavior or otherwise do not meet expectations. Laid off workers tend to be eligible for unemployment compensation.
The method of separation may have an effect on a former employee's ability to collect whatever form of unemployment compensation might be available in their jurisdiction. Depending on local or state laws, workers who leave voluntarily are generally ineligible to collect unemployment benefits, as are those who are fired for gross misconduct. Also, lay-offs due to a firm's moving production overseas may entitle one to increased re-training benefits.
Termination of employment is the end of an employee's duration with an employer. Depending on the case, the decision may be made by the employee, the employer, or mutually agreed upon by both.
Voluntary termination is a decision made by the employee to leave the job. Such a decision is commonly known as "resignation", "quitting", "leaving" or "giving notice”.
Involuntary termination is the employee's departure at the hands of the employer. There are two basic types of involuntary termination, known often as being "fired" and "laid off." To be fired, as opposed to being laid off, is generally thought of to be the employee's fault, and therefore is considered in most cases to be dishonorable and a sign of failure.