Survive A Layoff Homepage

Question: Can you collect unemployment as well as a severance package ?

(Posted by: scain16 on 2010-03-18 15:15:57)

Can you collect both unemployment as well as a severance package or is it one or the other? Is one choice better than the other? Please, simple answer.

Posted by: CarolO on 2010-03-18, 17:53:37

I received a very very nice severance package when I was laid-off. I was certain I wouldn't get UI benefits until after it had run out, but because my employer reported it as "payment in lieu of notice " I received UI immediately. What happened was, my company was bought out and there was a purge of "old " employees by the new owners. A group of people walked into the office and told a group of us that we were being laid off and had exactly one hour to get our stuff together and leave the building or they'd have to shoot us. (Okay, I made up the last 6 words, but that was the impression they gave. I think they were afraid we'd rise up and revolt or something and wanted us gone immediately.) At any rate, because there had been no advance notice of our being terminated, and therefore we never knew we were going to need to get another job, they paid us "in lieu of notice " money. I, of course, grabbed it and danced my way out to the street. So, if it's "in lieu of notice " severance, take it and claim UI immediately. If it's *not* "in lieu of notice " severance, take it and use the money to help you until you get a new job. If you don't get a new job, then start collecting UI benefits. Never never never pass up severance. Who knows, you may get a job a week after leaving your old employer and never be eligible for UI at all but still have a nice little bag of coins from your old employer.

Posted by: Mathew on 2010-03-18, 16:09:19

It would depend on the nature of the severance package but at some point you would be able to collect unemployment.

Posted by: Liberal AssKicker on 2010-03-18, 16:34:48

Yes, but like all other forms of income, your severence might have an effect on how much unemployment you get (it will vary from state to state). You are "eligible " for unemployment depending on the circumstances of your separation. You get $$ based on how much you made while employed and how much you make while collecting. (You can actually work and collect unemployment at the same time. In my state, the moment I report 40 hours or more, my unemployment check is $0 and I simply file another claim the following week. After a number of weeks of 40+ , I get booted from eligibility.)