Unemployment Compensation after Severence Agreement
I was laid off from my company due to downsizing and have been offered a severence package of 4 weeks pay. To recieve the severence I am required to sign a "Release of Claims" Agreement.
If after the 4 weeks of pay are paid and I have not found other work can I still file for unemployment at that time?
If I sign the "Release of Claims" Agreement does this in any way take away my rights to file for unemployment in exchange for the severence pay (can the company deny unemployment compensation if I sign)? I've been w/ the company for 2 yrs.
Thank you!!
Answers (1)
unemployment
I suggest you have an attorney review the agreement before signing it. Normally in a layoff situation, you will be able to collect unemployment. Depending on how the severance is paid and how the Texas Workforce Commission construes the payment, you might have to wait until you receive your last severance payment to receive unemployment. Be careful in the wording of the agreement. It is possible that the company could put wording in the agreement that says it is a resignation and not a layoff. If the TWC thinks you quit the company on your own volition, they might deny your unemployment.
posted by Trey Henderson | Dec 14, 2002 08:44 AM [EST]
I suggest you have an attorney review the agreement before signing it. Normally in a layoff situation, you will be able to collect unemployment. Depending on how the severance is paid and how the Texas Workforce Commission construes the payment, you might have to wait until you receive your last severance payment to receive unemployment. Be careful in the wording of the agreement. It is possible that the company could put wording in the agreement that says it is a resignation and not a layoff. If the TWC thinks you quit the company on your own volition, they might deny your unemployment.
posted by Trey Henderson | Dec 14, 2002 08:44 AM [EST]
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