My wife was laid off from her job of 18 years last month, and I am having difficulty finding the answer to question we have:
She has a nine month severance package at full pay now, so she is looking for new work, but if she did find a new job, part time or full time, during that severance period, and for some reason, the new job was crap or didn’t work out, would she still be eligible to collect unemployment from her old company at the end of her severance period?
Live in PA. My uncle was retired(not his choice) from his job of 20 years last year. He was given 6 months severance at I think full pay. He collected unemployment at the same time. Not what you asked, but you can get both at the same time it seems.
You apply for unemplyment and let them know about your severance package. You will have reductions made. Usually if you’re getting 4 weeks severance then you cannot collect unemployment while you’re on those 4 weeks.
If it’s a lump sum your getting it may not effect you at all. It may be considered a “gift” or “incentive” and you will be able to get that and collect unemployment as well.
Usually what stops the collection is if the severance is equal to the exact pay and benefits the person was getting before being let go. In otherwords you are still getting the same wages/salary and benefits.
Again state laws differ
Some companies don’t offer a true severance package but a rights waiver. What that is to get the severance, you will be required to give up certain things. It may be a no-compete clause and include the right to claim or not to claim unemployment, the right to sue for wrongful termination etc, etc
Your wife should apply for unemployment now. Always apply immediately. She won’t get it, but then if her severance runs out, she will be able to kick start the process 'cause she’s already in the system. So don’t wait, apply as soon as possible.
To be on unemployment she would have to be willing and able to work, so if you get offered a bad job and it still meets qualifications (salary etc) you would have to take it.
But your wife needs to apply for unemployment NOW. If she gets rejected fine, but she’ll be in the system and it’s easier to restart it than to start anew, should she be unable to find work.
Right. Apply for unemployment now and let them know about the severance package.
Here in Washington, when I was laid off and given three months severance in a lump sum, it didn’t affect my unemployment at all. Obviously different states will have different laws.
Rules are different for different times & places, but I love this story about a person at the large company I used to work for.
A secretary (oops, “Administrative Assistant”) whom I will refer to as Mary, had been employed at The Company for many years, long enough that when her department was eliminated and she was laid off she qualified for severance pay equivalent to a year’s salary. This did not bar her from receiving unemployment benefits since it was a lump sum payment.
She collected unemployment for a while. Then another department had an AA resign. Someone suggested hey, how about Mary? She is really, really good and is still out of work. So Mary was rehired. Here comes the good part: Since she had been out of the company for such a short time, her seniority remained, and she still had “credit” for all her prior years of employment there.
See what’s coming? The really, really good part. After a couple more months, the second department, too, was eliminated, and Mary was laid off again. However, under company policy, she still had the same number of years of service credit and received ANOTHER severance package equivalent to a year’s salary! And then went back on unemployment.
The company has since changed the rules to prevent this from happening again, but it was nice that a hard-working front-line worker got the breaks for once.
When I was let go I got six months severance in a lump sum. I did file for unemployment but was denied due to the severance. I had to wait for six months since my severance specifically said it was for six months. I re-applied after six months and then got unemployment benefits.
I think the OP may be asking if the private severance pay will be affected by future employment. I believe that is not the case: even if she gets a new job the next day, she should be able to continue to collect the private severance pay.
I believe you are correct. I have never seen a severance package that has any restrictions based on finding another job. It is just yours. I have known several people that found a job quickly and had a lengthy severance package from their old company so they did quite well and it was a huge financial bonus for a while, essentially two full incomes.