Unemployment and Severance
When you lose a job, one of your first concerns is to find out where your next paycheck will come from. There are several ways to ease the transition from employed to unemployed. Two of the most important safety nets for unemployed people are unemployment checks and severance pay. But many people are uncertain about how to receive these forms of payment, how long they will last, or if they can receive both at the same time.
Employers are not required by law to give severance pay to terminated employees. However, it is a common benefit in new employee contracts. Check your work contract to see if it says anything about receiving severance pay in the event of a layoff. Also, if other employees working in a similar capacity received severance pay, but you did not, you may be able to sue on the basis of discrimination. Since there are no standardized laws regarding severance pay, the amount of pay offered in a severance package is left to the discretion of your employer. Consult your employment contract if you are unsure as to your company’s severance pay policy.
Unemployment benefits, on the other hand, are payments from the government to those who are looking for, but are unable to find, work. Many laws regulate who can receive unemployment, how much they can receive, and for how long. The laws vary from state to state, so call your state’s unemployment hotline for specific details about how to apply. Unemployment can help tide you and your family over until you find a new job.
The relationship of severance pay to unemployment benefits can be confusing. Sometimes severance pay is intended to go hand in hand with unemployment benefits. In these instances, the amount of severance pay will probably be relatively small. Other times, severance packages can be so generous that your state unemployment agencies will not allow you to go on unemployment until the package ends. The final decision will rest with your state’s unemployment agency.
Contact Us
If you wish to learn more about this complex area of employment law, you should consult a professional attorney. The federal employment lawyers of The Vaughn Law Firm may be able to help you through your loss of employment. Call 877-615-9495 with your questions.
