Need help with question about being laid off!

dixon413 · Jan 30, 2013

My father in law has been told by his employer that they are doing away with his job. They offered him a 3 month severance package but only if he signs papers saying he is taking early retirement. He doesn't want to take early retirement but they won't give him his severance package unless he does. What's the catch here? Why are they dead set on him signing those papers?

Jeetdawg · Jan 30, 2013

My brain is a little foggy right now, but if my labor law memory serves me right, if he takes a retirement package, he wouldn't be able to file for unemployment benefits against them

tjrutz · Jan 30, 2013

Jeetdawg said:
My brain is a little foggy right now, but if my labor law memory serves me right, if he takes a retirement package, he wouldn't be able to file for unemployment benefits against them

That's right! They are probably letting or have let a good amount of people go! They have to pay a % into unemployment and the more claims they have the higher the % is. What's does he do and is it gonna be hard to find another job in that field? If so I'd figure out if his severance package is more than 1 yr unemployment and if so I'd take it! I don't know of many people who have gotten unemployment benefits past a yr.

Georgia Hard Hunter · Jan 31, 2013

Its harsh but I'd say for him to take the 3 month package. If he doesn't all they have to do is ride him a little, establish cause thru bogus write ups and them fire him and he gets nothing. He should also ask for letters of recommendation to go along with the 3 month package. At least he would be well armed in looking for another job. Also he could talk with them about taking a demotion into a lower paying job in order to stay employed.

merc123 · Feb 1, 2013

^--- It might also be in his best interest to consult with the local Dept. of Labor about it and see what the options are.

Milkman · Feb 1, 2013

He wont be eligible for unemployment if the severence pay is given over the period of 3 months as pay. If it is a lump sum he should be able to file for unemployment immeadiatly.

If he is getting a retirement check routinely as a part of the seperation from them that will effect his eligibility for unemployment. Some plans may allow you to delay the start of retirement benefits.

Anvil Head · Feb 4, 2013

Better check with the DOL. They will look at the severance pay as continued income in most cases and will not start unemployment benefits until that income period is completed based on current pay rate.
While all the above advice is well meant, the givment will have the last say.

DAVE · Feb 4, 2013

If he plans on working again, I would advise against collecting unemployment. If he is over 50 years old it may be hard enough to find a job without having unemployment or disabilty payments hanging over his head. Good luck to him and remind him the "Government" is not his friend or protector.

Need help with question about being laid off!

dixon413

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Jeetdawg

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tjrutz

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Georgia Hard Hunter

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merc123

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Milkman

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Anvil Head

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DAVE

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