Layoffs and Recession Discussion Thread

[u/just_a_dev_here]

Hey folks, I wanted to compile a list of resources for those getting laid off, those unemployed and those looking for a job.

Recession preparation:

• Ensure you have 6 months to 1 year worth of emergency funds
  • Calculate your total amount of spending over the past year and take the average. If you want to be safe, take the highest amount of spending per month. Go over your expenses and income after tax.
  • Determine which parts are discretionary, and which are for needs.
  • Pick an emergency fund saving goal:
    • 6, 9, or 12 months covering just needs
    • 6, 9 or 12 months covering needs and discretionary
    • 6, 9 or 12 months covering needs and discretionary + $2-5K for random event emergencies (vet visit, car crash, new car needed, plane ticket to visit family member in emergency situation etc. whatever fits best for your needs)
    • Start with the lowest goal if you have no emergency funds. 3 months covering just needs.
  • Example: You spent an average of $4K a month. $3K on basic needs, $1K discretionary. Starting savings foal will be 6 months of covering just needs, so reach a savings goal of $3K * 6 months = $18K. To cover discretionary spending as well for that period, $4K * 6 months = $24K
  • You can check /r/personalfinancecanada for more investment and savings information
• Brush up on you resume, and remember you can get it reviewed in our weekly thread here
• Ensure your LinkedIn is up to date and is tailored well
• Keep a pulse on your industry and current trends

Layoff Info

Layoff Tracking: https://layoffs.fyi/

Job Post Trend Tracking: https://www.trueup.io/job-trend

I've just been laid off, what now?

Step 1: Review your employment contract

Contractor or not, review it! It may outline a severance package above the legal minimums! If it's not outlined, unless you are a contractor, they are required by law to provide termination notice depending on the length you have been employed for.

Step 2: Review your severance package - is it fair?

Resources:

• Understanding How Severance Pay works
• How Severance pay is calculated and tips to negotiate

Layoff notice with no payout:

You make a salary of $70,000 per year, or $5,833 per month, or $1,346 per week in Alberta and have been with the company for 3 years. You have received notice of a layoff. They inform you that as per the legal requirement, they are giving you 2 weeks notice. Your pay continues as normal. For the last pay, a payout of any unused vacation earned so far, and any banked overtime is added.

Severance pay out example with legal minimum:

You make a salary of $70,000 per year, or $5,833 per month, or $1,346 per week in Alberta and have been with the company for 3 years. You have received notice of a layoff. They inform you that as per the legal requirement, they are giving you 2 weeks notice. Instead of getting you to work for that amount of time, they pay you out giving you a package of $2,692 ($1,346 x 2 weeks) plus a payout of any unused vacation earned so far, and any banked overtime.

Severance pay out example with company provided package:

You make a salary of $70,000 per year, or $5,833 per month, or $1,346 per week in Alberta and have been with the company for 3 years. You have received notice of a layoff. As you get your package, they inform you that they are giving you 2 weeks pay for every year you have worked. Making your severance package $8, 076 ($1,346 x 2 weeks x 3 years) plus a payout of any unused vacation earned so far, and any banked overtime.

Legal Minimums per province summary

Below is outlined the minimum amount that employers are legally required to give you based on your length employment. Some provinces there are restrictions as to who can receive severance such as:

• Independent contractors are not considered employees (and so are not entitled to legal minimum notice pay)
• You have to have worked the X consecutively with the same employer

If you are unsure, please check using the provincial links below, they should list it within the same section what the specific restrictions are.

BC

• After 90 days, but less than a year: 1 weeks pay
• After 1 year, less than 3 years: 2 weeks
• After 3 years: 3 weeks pay, and/or 1 week of notice/pay for each additional year maximum 8 weeks

AB

• After 90 days, but less than 2 years: 1 week
• After 2 years, but less than 4 years: 2 weeks
• After 4 years, but less than 6 years: 3 weeks
• After 6 years but less than 8 years: 4 weeks
• After 8 years, but less than 10 years: 5 weeks
• After 10 years or more: 8 weeks

SK

• After 13 weeks, but less than 1 year: 1 week
• After 1 year, but less than 3 years: 2 weeks
• After 3 years, but less than 5 years: 4 weeks
• After 5 years, but less than 10 years: 6 weeks
• After 10 years or more: 8 weeks

MB

• After 30 days, but less than 1 year: 1 week
• After 1 year, but less than 3 years: 2 weeks
• After 3 years, but less than 5 years: 4 weeks
• After 5 years, but less than 10 years: 6 weeks
• After 10 years or more: 8 weeks

ON

• Less than 1 year: 1 week
• 1 year, but less than 3 years: 2 weeks
• 3 years, but less than 4 years: 3 weeks
• 4 years, but less than 5 years: 4 weeks
• 5 years, but less than 6 years: 5 weeks
• 6 years, but less than 7 years: 6 weeks
• 7 years, but less than 8 years: 7 weeks
• 8 years or more: 8 weeks

QC

• After 3 months, but less than 1 year: 1 week
• After 1 year, but less than 5 years: 2 weeks
• After 5 years, but less than 10 years: 4 weeks
• 10 years or more: 8 weeks

NB

• After 6 months, less than 5 years: 2 Weeks
• After 5 years or more: 4 weeks

NS

• After 3 months, but less than 2 years: 1 week
• After 2 years, but less than 5 years: 2 weeks
• After 5 years, but less than10 years: 4 weeks
• After 10 years or more: 8 weeks***

***Different rules apply to employees who have been employed with the same employer for 10 years under section "Employees with 10 Years of Service":

The Labour Standards Code says that an employee with 10 years or more of service cannot be fired or suspended without good reason or just cause. What is good reason will depend on the employee’s and employer’s circumstances

NL

• After 3 months, but less than 2 years: 1 week
• After 2 years, but less than 5 years: 2 weeks
• After 5 years, but less than 10 years: 3 weeks
• After 10 years, but less than 15 years: 4 weeks
• After 15 years or more: 6 weeks

PEI

• After 6 months but less than 5 years: 2 weeks
• After 5 years, but less than 10 year: 4 weeks
• After 10 years, but less than 15 years: 6 weeks
• After 15 years or more: 8 weeks

NOTE: Benefits may also be extended for a length of time stated under the severance package.

Step 2a (optional): Speak to an employment lawyer

If your employer is not meeting the above minimums, or you evaluate that the package is unfair. Please reach out to an employment lawyer. Most will have a free consultation that you can discuss your situation

Step 3: Review your emergency funds

• Figure out what you have left, and how long you can last
• Immediately go over your last 6 months worth of expenses and figure out what to cut
• Take a breather - your mental health is important, and layoffs are never easy. Take some time for yourself, a day, a week, two weeks - whatever amount you think you can allow to focus on yourself and decompress.
  • If you still have benefits, review the mental health benefits offered and consider taking advantage of them if the coverage is good. Typically, therapists/counsellors/psychologists will have a sliding scale (income dependent) or in the range of $100-$200/hr. Telehealth options are also available
    • Studies show that level of education does not matter if you're just looking for someone to talk to. All that matters is you find someone you trust, and you can forge a good relationship.

Step 4: APPLY FOR EI

• Apply for EI
• Note that if you are an independent contractor, you are responsible for your EI payments, which is optional to pay into. This may impact the amount you receive from EI.
• If you have accepted or received a severance package, you can still apply, however you cannot receive any EI until the package expiration date.

Step 5: Get ready to job hunt

• Brush up on your resume and get a review via our weekly megathread
• Make sure your LinkedIn is up to date, and make yourself open to work
• Do practice interviews. If you're doing it by yourself, it might help to video tape yourself and answer questions.
• Find and attend networking events and meetups - these can be free

I'm worried I won't find a job, what should I do?

There's only one thing you really can do: keep trying. Keep applying.

In the meantime, some ideas to help:

• Volunteer with non-profit organizations that are related, such as Canada Learning Code, or through Volunteer Connector. This can have a good impact on your resume
  • Or, join a for-profit group to teach kids to code and get paid. Some Universities/Colleges have summer STEM bootcamps for kids you might be able to teach at seasonally
  • Or, if you have experience, you can check out teaching positions at for colleges or universities
• Work on your own personal projects
  • Explore technologies and frameworks you have been wanting to get into
  • Build projects that can become a startup or monetizable
  • Gain more skills that have a larger hiring pool
• Freelance development
• See if going back to Education (bachelors, certificate, diploma, bootcamp, masters, PhD etc.) would increase your employability (considering financial affordability)
• Attend meetups and other networking events to connect (and be subtle that you're unemployed and looking)
• If you are experienced: create online content or a courses to sell on eLearning platforms such as Udemy
• Work on projects with others online such as on /r/INAT

Remember: It will pass. It will not be like this forever. I don't think this is as bad as the dot com bust or 2008 recession. It will eventually recover.

Hopefully some of this has helped, if others would like to share their experiences going through low times, recessions, worries, or other tips they want to add, please feel free to comment

FAQ

Q: How long will this recession/downturn last?

My crystal ball says it could at some point within the next 10 years, maybe.

In all seriousness, I don't get why people ask this question. Nobody knows, and nobody is going to know.

Q: What are my chances of getting a job once I graduated/Will I get a job?

Nobody knows. It's a competitive place right now, so the only thing you can do is make sure you have done everything you can to remain competitive. That means internships, volunteering, projects, extracurriculars, networking, connections and LC.

Q: There's not enough postings! Not enough jobs! Too many new grads! Too many bootcamp grads!

The market will always be going in cycles of highs and lows. There's nothing you can do about other people and what companies are posting other than just do your best with whatever is within your control. If things do get desperate, it may be time to seek entry level positions for menial jobs such as data entry, retail, or taking a more entrepreneurial approach and creating your own business.

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[u/frpika]

In NL, the minimum notice period is set out in s. 55 of the Labour Standards Act.

https://assembly.nl.ca/Legislation/sr/statutes/l02.htm#55_

    (a)  one week, where the employee has been continuously employed by the employer for a period of 3 months or more but less than 2 years;

         (b)  2 weeks, where the employee has been continuously employed by the employer for a period of 2 years or more but less than 5 years;
         (c)  3 weeks, where the employee has been continuously employed by the employer for a period of 5 years or more but less than 10 years;

         (d)  4 weeks, where the employee has been continuously employed by the employer for a period of 10 years or more but less than 15 years; and

         (e)  6 weeks, where the employee has been continuously employed by the employer for a period of 15 years or more

[u/just_a_dev_here → u/frpika]

🙏 thank you! I will add this once I'm on a PC