There are two words that no one in the business world ever wants to hear: "You're Fired!" The sheer power and terrible implications that come with these two words are enough to send a grown adult's mind reeling, and push him or her to the verge of a full-fledged panic attack. Although being fired from you job may seem like the worst thing that could happen in your career, being asked to resign from your position can be just as harsh. There are some major differences between being fired and being asked to resign. Here is a look at five ways being fired varies from being asked to resign from your current position.

Being Asked to Resign is More Graceful
Being asked to resign from a position is often a much more graceful transition than being fired straight out. Being asked for your resignation letter may allow you to give yourself a grace period as to when your employment contract will end. This allows you to tie up loose ends, find a replacement position and prepare yourself for your impending career move. When you are fired, there is no grace period, no compensation package if fired for cause and no apologies. You've lost your job and now you must scramble to find a replacement or be impacted financially when you have to live without your former salary.

Being asked to resign isn't without a price because you may be given a time frame in which the resignation must be given. Additionally, you will have the added stress of working in a work environment where you know you are no longer welcome, and you may have the added responsibility of finding and training your replacement.

Who Has the Final Say
When it comes to terminating an employee contract, the rules are very tricky. A manager may consult various sources such as human resources, legal or a superior member of upper management to determine that he or she is following the proper protocol. Employees have rights, too. If an employee feels that he or she was unlawfully terminated, and he or she has proof to back it up, the employee can actually appeal an employer's decision to terminate the employment contract. In order to do so, you will need to contact your human resources department, and be prepared to present all of your pertinent documents showing proof that you were wrongfully terminated. Some examples of unlawful terminations include being terminated due to racial or religious bias.

Financial Implications
The financial implications between being fired outright and being asked to resign are quite different as well. Being asked to resign will have much less of a financial impact than being fired would. With a resignation you can collect up until your last day on the job and file for unemployment while you look for work. If you are fired for reasons like serious misconduct, you may find yourself having a difficult time getting approved for unemployment compensation.

Being Fired May Complicate Your Job Search
Being fired from your most recent employer may make finding new work even more difficult. Explaining why you were fired to a potential employer is not only uncomfortable but difficult as well. While you are trying to explain to a potential employer why you would be the best candidate for the job, you have to explain why you failed at your most recent career venture. A resignation will be overlooked, while a termination will likely be scrutinized.

The Bottom Line
At the end of the day, a request for your resignation is a much more graceful option than being terminated outright. A resignation gives you a grace period to find replacement work, tie up loose ends and get your financial house in order before stepping into the world of unemployment.

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