Severance & Unemployment Benefits
Akron Ohio employer is closing up at 12/31/2006. They are offering one week severance pay for each week of service. How will the receipt of this severance pay impact employees' ability to collect Ohio Unemployment benefits to which they are otherwise entitled?
1 answer | asked Oct 3, 2006 4:03 PM [EST] | applies to Ohio
Answers (1)
Lump sum severance vs. salary continuation
Although you will be eligible for unemployment compensation benefits as a result of the closing, Ohio Department of Jobs and Family Services will reduce your weekly benefit dollar for dollar by any amounts that you receive during that particular week. This includes severance benefits paid as salary continuation. Therefore, if your employer continues your salary one week for each year that you were employed, you will probably lose your unemployment benefit for that week.
If your employer pays you the severance pay as a lump sum, however, you will receive it all at once. This means that you will receive it in one week. You may have your benefits reduced that week, but I do not believe that JFS will spread the lump sum amount out. Therefore, if you have some room for negotiation, you will enhance your unemployment benefit by receiving a lump sum instead of salary continuation.
Regards,
Neil.
posted by Neil Klingshirn | Oct 3, 2006 5:09 PM [EST]
Although you will be eligible for unemployment compensation benefits as a result of the closing, Ohio Department of Jobs and Family Services will reduce your weekly benefit dollar for dollar by any amounts that you receive during that particular week. This includes severance benefits paid as salary continuation. Therefore, if your employer continues your salary one week for each year that you were employed, you will probably lose your unemployment benefit for that week.
If your employer pays you the severance pay as a lump sum, however, you will receive it all at once. This means that you will receive it in one week. You may have your benefits reduced that week, but I do not believe that JFS will spread the lump sum amount out. Therefore, if you have some room for negotiation, you will enhance your unemployment benefit by receiving a lump sum instead of salary continuation.
Regards,
Neil.
posted by Neil Klingshirn | Oct 3, 2006 5:09 PM [EST]
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