Can you collect unemployment & severance pay at the same time if you loose your job?

Quizzle

This may depend state by state, but in almost all cases, I think you'll find that severance pay is considered continued employment until it runs out, so it will negate unemployment while the severance continues.

In other words, let's supposed you've been given 30 days severance pay. In most cases, you would be unable to receive unemployment until 30 days after you've left the company. Think of the severance as still having a job, you just don't have to go to work to get paid. Once the severance is over, you no longer have a job.

But like I said, check with your state's unemployment office. They'll be able to answer your questions. One last thing, sometimes as a condition of receiving severance pay, you agree to not apply for unemployment benefits. Check your documents to see if this applies to you.

Roger B

Only in the event that you've accepted a lump sum can you draw unemployment at the same time as severance pay. If your old company is paying you a salary, you won't be able to draw unemployment until the day after the very last day for which you are being paid.

When you go to the unemployment office, you will specifically be asked if you are drawing severance and the date your pay will end.

That being said, you need to contact your state unemployment office and find out if they have a waiting period prior to paying out benefits. A lot of states have a 1 week waiting period, which means you will want to go sign up for benefits a week BEFORE your severance runs out or you will go for one week without getting paid. You will still get the same number of weeks of unemployment, but you would go for a week with no money and depending on your financial position, this might be a problem for you.

eddood52

Not legally. Severence pay is seen as part of the normal payment you would receive. If you are let go and collecting severance pay, it is counted as if you were still employed. And you are expected to pursue another job while being paid this. If your job is very unique and hard to find, you may be allowed to apply for unemployment, but the actual unemployment period credited would not start until your severance pay period is expired.

rwa000

no you have to wait until severance is over unless you take it in a lump sum

mjs2mjm

no
my husband took redundancy a year ago and got Â£3000 pay out the social told us to live on that for 3 months before they will pay anything

Slick

If you live in California, "severance pay is not deducted from unemployment insurance benefits and does not affect your eligibility to receive benefits. The method of payment, such as a lump sum payment or payments paid to you at regular pay period intervals does not change the nature of the payment. However, you must report severance pay at the time you file your unemployment insurance claim."

This is directly from the EDD website of California. If you are from another state, check the unemployment or employment development department website of your site.

Drunken Lemmi ;) Winks

Severance pay is I think a benefit from your employer that they give to you for laying you off. Not everyone is eligable for this. Unemployment is filed by the state unemployment office, and your last three employers have to pay for this.

So, yes, you can receive both at the same time, but only if you take the severance all at once, not getting paid weekly or however they do it.

Enter Your Message or Comment

User Name:
User Email:
Post a comment: