I’ve a friend who’s been working at her current job since April, and her boss has recently asked her to change the terms of her employment. Instead of receiving a straight salary, she’ll be paid 40% less and receive a commission based on business she brings in. In addition to this arrangement being very unusual in her industry, her specific job description has very little influence on the profitability of a client.
For obvious reasons, she has declined the new arrangement,but the company say if she’s dissatisfied with it then she can quit. However, it’s my understanding, to be eligible to receive unemployment insurance, she needs to be let go.
Can they force her to take the decreased salary and increase responsibility? Is there any way she can quit and still be eligible for unemployment?
Yes you can quit for a good reason, and get unemployment, but you better make sure it’s a darn good reason.
First of all she shouldn’t quit TILL AFTER the change is in effect. Have them put the new pay scale in writing. Then she should, IN WRITING, refuse this and say they can keep her on at her old pay scale or fire her but she cannot live on that wage. Alway phrase this nice and politely.
When the company says “no,” then she can quit and give a resignation notice explicitly stating it was the lack of funds and her inability to live on them that forces her into a full time job search and she must resign but if this pay reduction had not been done she would’ve stayed.
When she leaves and gives notice (remember you want no issues with the employer for future references), she files unemployment, she should indicate she was let go, NOT QUIT on the form (it matter little in the end, but it can put the application on hold if she puts QUIT).
The company will most likely fight the unemployment claim and she then takes this to arbitration and has the back up she win it eventually. She most likely will have to fight to get it but she will get it. But it won’t be on the first round
I have had jobs where they didn’t even fire me but cut my hours and I got unemployment while working for the job that cut my hours (not very much but it was something).