Are you eligible to receive unemployment if you resign? What if an organization offers members of...

Are you eligible to receive unemployment if you resign? What if an organization offers members of management a severance package during a RIF (reduction in force), how does that impact unemployment benefits?

Expert Solution

Before you leave your job, you will need to know what benefits you are eligible for. You are entitled to receive some benefits by law. Your employer may opt to provide additional benefits other than those mandated by state or federal law.

Ask about severance pay, accrued vacation, overtime and sick pay, pension benefits, and eligibility for unemployment insurance. Request information on continuance of health and life insurance benefits. If you have any questions on what is offered, check with your State Department of Labor for clarification.

Unless you have an employment contract, you are most likely an at-will employee. This means that you can be fired at any time, for any reason that isn’t illegal. Likewise you have the freedom to quit at any time for any reason.

While layoffs and RIFs due to business reasons are perfectly legal, employers can get into trouble if they discriminate when carrying them out. Employers may not single out certain employees for layoff based on race, gender, age, religion, or another characteristic protected under federal or state antidiscrimination laws. (For more information, see our page on employment discrimination.)

For example, it is illegal for an employer to decide to lay off the oldest employees at the company. If you believe you were fired due to your age, or your membership in another protected class, consult with an employment lawyer right away.

Unemployment compensation benefits are meant to help you make ends meet until you find a new job. These benefits are available to employees who lose their jobs through no fault of their own. So if you were laid off or lost your job through an RIF, you will typically be eligible for benefits. (See Unemployment Compensation When You've Lost Your Job for more details on eligibility and amounts.)

ekkarill92 answered 1 year ago

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