Dear Stephen,
In December, I was let go from my job. Not for cause—the owner and I agreed that the mission I was hired to do was complete, so after five years he chose to terminate me. Honestly, I was surprised. But I understood, and we're leaving on good terms.
He asked me to stay on as a consultant for a limited time, basically until I find my next opportunity. That seemed like a win-win: I get to say I have a job while looking for one, and he might be reducing the risk of bad feelings and possibly even litigation.
Technically, I'm now getting paid on a 1099, so I'm no longer an employee.
So I'm not really working, but I can say I'm working. I haven't changed my LinkedIn or my resume—maybe part of me is embarrassed to say I'm no longer working, but also part of me thinks I'll get a better job if people think I'm working. Honestly, it's a dilemma for me, both moral and practical. Whether to say I'm working or not to prospective employers. What do you think?
Signed,
Fired but Not Fired
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Dear Definitely Fired,
You weren't fired for cause—you weren't walked out of the building with a disconnected computer, and you weren't accused of doing anything wrong. What happened to you is far more common and far less personal than most people want to admit: you got expensive and the company changed its mind. It's not a crime, it's just business.
Now let's talk about the consulting arrangement and the LinkedIn fiction, because this is where people who were treated decently after termination end up making very bad decisions. Your former employer is not keeping you on out of kindness—they're doing this for risk management. In my opinion, they want you to stay calm, stay quiet, and not talk to competitors. Mostly, they don't want you calling an attorney.
Keeping you "on paper" as a consultant and letting you leave the job on your LinkedIn status makes them feel safer. It buys them time and reduces perceived exposure. In my opinion, that's the real motivation. But here's the part no one wants to say out loud: you don't need this arrangement nearly as much as they think you do. Unless you're fired for cause (stealing, lying, harassment), being unemployed is not the scarlet letter people pretend it is. Good employers understand restructures, strategy shifts, comp changes, and ego collisions. In fact, senior people are expected to have a gap or two in their resume.
What does give employers pause is dishonesty. If you tell a prospective employer you're still working actively lookingwhen you're not, you've crossed from "positioning" to "lying." Hiring managers don't stop at the lie—they assume that people who lie about their employment status will also lie about their sales numbers, expense reports, and quarterly projections. That's the real risk, and once you've planted that seed, it grows.
This doesn't mean you should blow up your consulting assignment; it just means it needs to be explained. I tell people to call it a "consulting transition assignment" because that's the honest truth. However, if the consulting assignment is purely cosmetic—no work at all, no deliverables, just a LinkedIn placeholder—don't use it on your resume or LinkedIn. Just say you're unemployed. You need to tell the truth and control your own narrative. Don't let your former employer control your narrative in the market.
Here's a sentence to use in an interview: "I was well-compensated, the company changed strategic directions, and we agreed it was time for me to find a better long-term fit." That's not a weakness, that's credibility. One last thing I've always noticed: companies don't feel bad when they fire people, they feel anxious. Anxious companies offer odd arrangements that benefit them more than you. Don't confuse your boss's guilt with generosity. Get paid if you can, be honest always, and remember—your reputation will outlive this employer. That's an asset you don't gamble with.
Stephen