Unemployment Compensation

Rockie

Case in Point.

An employee is having performance problems, people problems, etc. All are documented. Is it a good idea to give the option to resign in lieu of being terminated? If this is the case, would it be viewed by unemployment as a voluntary quit (which would not be compensable) or a termination which may or may not be compensable.

I know the resignation saves face for the employee, but in SC voluntary resignations mean you are ineligible for unemployment compensation. Most termed employees leave skidmarks from our office to the unemployment office.

LFernandes

I'm a little confused. Do you want this employee to be eligible for unemployment?

Don D

Rockie: In Mississippi, and most other states, the claims office will treat this as a discharge, if the claimant in fact tells the claims interviewer he was allowed to resign in lieu of discharge. Then the claims investigation takes the route of 'Why was he discharged?' It can work other ways, however, if the employer does not respond to the claims questionnaire or either states, for example, 'this employee's job was no longer available' and will not go further when questioned, it's treated like a L.O.W. (lack of work). If the employer tells the employee they will either not respond to the claims office or will state something vague enough to in effect not protest the drawing of a claim and the claimant states layoff or job elimination to the interviewer, it should sail through, if that is your intent. You are not required by law to even respond to the U.I. questionnaire or phone call from the unemployment claims office - If they tell you that you are, ask them what the penalty is (none). If the company's intent is to allow the person to draw a claim, that's how it's done (I worked at MESC for a number of years). If the company's intent is to allow the ex-employee the dignity of putting 'resigned' on an application or resume, he'll have to sort that out. What will you do about future employment verification inquiries?

Rockie

Don, thanks. I was trying to figure out how unemployment would treat this if employee put resigned on the application - if UE would treat as a voluntary resignation even though it was a resignation in lieu of termination. I believe you answered quite thoroughly.

Rockie

OOPS. Forgot to answer your question Don. On employment references we only give out the dates of employment and what position the employee held. I've found this is the only thing you get from most companies when you ask for references.

Don D

One other point Rockie: If the claimant puts 'resigned' on the form, the claims investigation will have to proceed to determine whether or not he is out of work due to no fault of his own, or otherwise. 'Resigned' will not get him anywhere other than a continued investigation. Resigned is generally thought to result in a claim denial, but, often the investigation finds the resignation was warranted and the claimant will draw. If he puts 'laid off' or 'job eliminated' and you don't respond, he draws. If he puts 'resigned' they proceed to ask him 'resigned, why?', and they also send you that info on a questionnaire and ask you 'why?'. The cleanest way to let him resign with dignity and draw unemployment is to let him resign, and don't respond to the claims office. This is probably already a done deal, but if not, be careful not to advise him WHAT to state on the claims form.....it might trap you in a fraud inquiry. Of course this is all stated from a MS frame of reference. There are 50 different sets of Unemployment Insurance laws.