What to do after being laid off: a first two weeks checklist

File for unemployment benefits right away

Every country and US state has a waiting period before payments begin, so filing on day one matters. In the US, most states impose a one-week unpaid waiting period, and payments typically start two to three weeks after you file. In Canada, you file an EI claim through Service Canada and the standard waiting period is one week. In the UK, you claim Universal Credit or New Style JSA online, and the first payment usually arrives five weeks after your claim date. In Australia, you apply for JobSeeker through myGov, and there is a one-week waiting period plus a potential assets test.

Have your layoff letter, final pay stub, and employer details ready before you start the form. If your employer gave you a severance package, check whether it affects your eligibility. In many US states, severance paid as a lump sum does not delay benefits, but severance paid as continued salary often does.

• US: file at your state's workforce agency website on the day you are laid off
• Canada: file at canada.ca/en/services/benefits/ei within four weeks to avoid losing weeks of pay
• UK: claim Universal Credit at gov.uk/universal-credit or New Style JSA if you have enough National Insurance contributions
• Australia: create or log in to your myGov account and link it to Centrelink before applying for JobSeeker

Read your severance and separation documents carefully

Before you sign anything, read the full separation agreement. Most agreements ask you to waive claims against the employer in exchange for severance. In the US, workers over 40 must be given at least 21 days to consider the agreement under the Older Workers Benefit Protection Act, plus seven days to revoke after signing. In Canada and the UK, there is no statutory review period, but you are never obligated to sign immediately.

Check the agreement for non-compete clauses, non-disparagement language, and whether your equity vests on termination or is forfeited. If the severance offer feels low, it is reasonable to negotiate. A common benchmark in the US is one to two weeks of pay per year of service, though this varies by company and seniority. If you are unsure, an employment lawyer can review the document for a flat fee, often between $200 and $500.

• Note the deadline for signing and the revocation window
• Confirm your last day of employer-sponsored health insurance
• Ask HR whether unused PTO will be paid out (required in some US states, not all)
• Check whether stock options have a post-termination exercise window, often 90 days

Sort out health insurance and other benefits

In the US, losing employer coverage triggers a special enrollment period for marketplace plans at healthcare.gov. You have 60 days from your last day of coverage to enroll. COBRA lets you keep your existing plan, but you pay the full premium plus a 2 percent admin fee, which can be $600 to $800 per month for an individual. A marketplace plan is often cheaper if your income drops significantly. In Canada, the UK, and Australia, public health coverage continues regardless of employment status, so this step is US-specific.

Also check your 401(k) or pension. You can leave it with your former employer, roll it into an IRA, or roll it into a new employer's plan later. Do not cash it out if you can avoid it; early withdrawal in the US triggers income tax plus a 10 percent penalty.

Build a simple budget for the gap period

List your fixed monthly expenses: rent or mortgage, utilities, loan payments, subscriptions, and insurance. Then list your income sources: unemployment benefits, severance, a partner's income, or savings. The gap between the two is what you need to cover each month. Most financial advisors suggest having three to six months of expenses in an emergency fund; if you are short of that, identify which subscriptions and discretionary costs you can pause now.

Contact lenders proactively if you think you will miss a payment. Many mortgage servicers and credit card companies have hardship programs that let you defer payments without a penalty. Asking before you miss a payment gives you more options than asking after.

1. List all fixed monthly expenses with exact amounts
2. Add up expected income from all sources for the next three months
3. Calculate the monthly shortfall
4. Identify three to five expenses you can cut or pause immediately
5. Contact any lender where the shortfall creates a risk of missed payment

Set up a job search system in week two

A job search without a system becomes exhausting and hard to track. The goal in week two is to build a repeatable process, not to apply to 50 jobs at random. Start by defining your target: role title, industry, location or remote preference, and minimum salary. Being specific makes every subsequent step faster.

Update your resume and LinkedIn profile before you apply anywhere. On LinkedIn, turn on the Open to Work badge (you can make it visible only to recruiters, not your full network). Write a two-sentence summary of what you do and what you are looking for, so anyone who lands on your profile understands immediately.

Break-In Bad's AI agent Omar can help here. She reads full job postings, including location, visa requirements, and seniority level, and scores each one against your profile. Jobs scoring 75 percent or above are applied to automatically on your behalf on platforms like Greenhouse, Lever, and Workday, with a screenshot as proof. Jobs between 45 and 74 percent are flagged for your review. This means you spend your time on the applications most likely to move forward, not on filtering through dozens of postings yourself. You get 50 free credits when you sign up, and credits never expire.

• Define your target role, industry, location, and salary range before applying anywhere
• Update your resume and LinkedIn before the first application goes out
• Track every application in a spreadsheet or tool: company, role, date applied, status
• Set a daily time block for job search activity rather than checking job boards all day
• Reach out to three to five former colleagues or managers each week, not to ask for a job but to reconnect

Protect your mental health during the search

Being laid off is a significant stressor even when it has nothing to do with your performance. Research on job loss consistently links it to increased anxiety and disrupted sleep, particularly in the first four to eight weeks. Treating the job search like a job, with set hours and a defined stopping point each day, helps prevent it from consuming every waking hour.

Tell people in your network what happened. Most people who have worked for more than a decade have been laid off at least once, and the stigma is far lower than it was a generation ago. Being open about your situation is how referrals happen. A brief, factual message works well: 'My role was eliminated in a restructuring last week. I am looking for senior marketing positions in the fintech space. Would you be open to a 20-minute call?'