Friday, January 27, 2012

Am I Entitled to Unemployment in Pennsylvania if I Volunteer for a Lay-Off or Reduction In Force?



Volunteering for a Lay-Off or To Be Part of a Reduction in Force is Deemed a Quit, and You Will be Ineligible for Pennsylvania Unemployment Compensation Benefits

If an employee quits his/her job, the employee is not eligible for unemployment benefits in Pennsylvania unless he/she had a necessitous and compelling reason to resign.

Volunteering for a lay-off or to be part of a reduction in force is not a necessitous and compelling reason to quit a job in Pennsylvania so, if you do so, you will not be entitled to unemployment compensation.

My Employer Said it Would Not Contest My Pennsylvania Unemployment Claim if I Agreed a Lay-Off or To Be Part of a Reduction in Force. What Does That Mean?

We receive many phone calls from employees who accepted a voluntary lay-off (“reduction in force” or “RIF”) with a promise from their employer that it “would not contest unemployment,” only to later be denied unemployment benefits by the Pennsylvania Unemployment Service Center. Let me explain how this works.

When you apply for unemployment benefits, the Unemployment Service Center will immediately 


write to your employer to confirm your wages and the reason that you are no longer employed.  Correctly believing that it is required to provide such truthful information to the Service Center, the company truthfully states that you voluntarily accepted a RIF. In the employer's mind, and in fact, merely telling the Service Center these facts does not constitute "contesting your claim."

Careful With These

What Happens in a Unemployment Hearing in Pennsylvania if My Employer Said It Would Not Fight My Claim?

In such circumstances, the Service Center will likely deny your claim on the grounds that you quit without legally sufficient justification.  You will then have to appeal, and go to an Unemployment Hearing before a Referee.

You might think that, if the employer honors its word and does not come to the Hearing to "contest" your claim, you will be out of the woods and sure to prevail.

However, that is not the case.

In voluntary quit cases, the burden of proof is on the employee to prove that he/she had good reason to quit (see Video). Hence, the employer's failure to appear at the Hearing, while helpful, is in no way dispositive.

The Referee will ask you questions in order to determine whether you meet the quit standard for unemployment eligibility.

If I Accept a Voluntary Layoff, Can I Get Unemployment Benefits in Pennsylvania?

The key in these type cases, and the issue the Referee will explore in detail, is whether you were in line for immediate termination if you did not accept the voluntary RIF.  Unless you were slated for immediate termination (absent accepting the voluntary RIF), accepting the voluntary RIF will be deemed to be a quit "without necessitous and compelling reason," and you will be ineligible for benefits.

However, if you were given the choice between immediate termination and voluntary RIF, and selected the RIF, you will be eligible for unemployment, provided that your termination was indeed imminent. If this option is presented to you, you should call an employment lawyer at once prior to accepting or rejecting the offer. The key here is that your termination must be imminent not, for example, something that will very likely occur a week, month or year down the road.

Some Math is Required!

What is Better, Severance or Unemployment Benefits?

Notwithstanding the above, you might want to accept the RIF even if you do not think you will ultimately be entitled to unemployment.  That analysis could depend on the amount of severance, etc., the company is offering to you if you voluntary quit, versus the amount you would get if, down the road, you are part of an involuntary RIF.  This is a question you should explore with HR if the situation presents itself.

So, you need to do the math, and consider your own career goals, financial circumstances, etc., when considering the employer's offer.

However, you should not assume that your right to unemployment will be unchallenged if you volunteer for a RIF.  It may well be, even if the employer had agreed not to contest your claim.

 HERE ARE SOME OTHER LINKS YOU MAY FIND WORTHWHILE:

Should I Hire a Lawyer for My Unemployment Appeal Hearing in Pennsylvania?

Why Hire An Attorney for My Pennsylvania Unemployment Hearing?

How Do I Appeal Unemployment in Pennsylvania? I Was Denied Unemployment Benefits and Need to Appeal of Have Appeal Hearing

What Happens at an Unemployment Appeal Hearing in Pennsylvania?

BECAUSE I HATE YOU: The Reasons Why Many Employers Fight Unemployment Claims in Pennsylvania - and What You Can Do About It

Philadelphia Area Lawyer's Quick Answers to the Most Common Pennsylvania Unemployment Questions

Pennsylvania Service Center for Unemployment Claims - Who Are These People, Anyway?

Unemployment Appeal Hearings by Telephone in Pennsylvania - The New Norm - And Why You Want to Consider Hiring Legal Counsel

Pennsylvania Unemployment Lawyer - Willful Misconduct Referee Hearings

Seven Things to Know About The Pennsylvania Unemployment Compensation Board of Review

I Want to Quit My Job and Get Unemployment Benefits in Pennsylvania

Pennsylvania Unemployment Determination of Financial Eligibility - PENNSYLVANIA UNEMPLOYMENT LAWYERS

How Do I Complete an Application for Unemployment Compensation Benefits in Pennsylvania - Did I Resign or Was I Fired?  What is a Reduction in Force Versus a Layoff?

 What is a Necessitous and Compelling Reason for Quitting my Job Under Pennsylvania Unemployment Law? Philadelphia Unemployment Lawyers Explain

The Burden of Proof in a Pennsylvania Unemployment Appeal Referee Hearing

Performance Appraisals, Performance Evaluations and Character Evidence at a Pennsylvania Unemployment Appeal Hearing -  Experienced Unemployment Lawyers Explains Why They Are Generally Irrelevant

Can I Get Unemployment in Pennsylvania if I am Out on Disability Leave? What are the Differences Between Short-Term Disability and Long-Term Disability?

 

I was Fired - What Should I Say on My Internet On Line Application for Pennsylvania Unemployment Benefits?

Pennsylvania's Unemployment Compensation Board of Review - Philadelphia Lawyers Who File Appeals With Unemployment Board of Review

Voluntary Retirement and Unemployment Compensation in Pennsylvania - Am I Entitled to Benefits if I Retire From My Job?

Should I Resign or Let Them Fire Me? What Happens If I Quit My Job?  What Rights Do I Lose If I Resign or Quit From My Job?  

Overpayments Under Pennsylvania Unemployment Law - Fraud, Non-Fraud, At Fault, Non-At Fault- Can I Go To Jail for an Unemployment Overpayment in Pennsylvania?

 

YOU CAN GET PARTIAL UNEMPLOYMENT COMPENSATION IN PENNSYLVANIA IF YOUR EMPLOYER REDUCES YOUR HOURS OR MAKES YOU A PART-TIME EMPLOYEE

 

Can I Get Unemployment In Pennsylvania If I am Working a Part-Time Job? How Much Can I Earn in a Part-Time Job Without Losing Unemployment Benefits?

Unemployment Compensation Rules for Pennsylvania Public School Teachers, Administrators, Principals and Employees

What is My Base Year Under Pennsylvania's Unemployment Law?

HOW DO I COMPLETE AN APPLICATION FOR PENNSYLVANIA UNEMPLOYMENT BENEFITS - SOME KEY TIPS

SEVERANCE PAY, SETTLEMENTS AND PENNSYLVANIA'S NEW UNEMPLOYMENT LAW

Forced to Resign:  What Are My Rights if I am Forced to Quit From My Job in Pennsylvania?

POOR PERFORMANCE IS NOT WILLFUL MISCONDUCT UNDER PENNSYLVANIA UNEMPLOYMENT LAW

 

Are Temporary Employees Entitled to Unemployment in Pennsylvania?


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