Reason for termination:
If an employee’s employment is
terminated
due to no fault of his/her own, he/she may be eligible
for UI. However, an eligibility criterion greatly
depends upon the state in which the person was working
and seeking UI.
The unemployed person must meet state requirements
for wages earned or time worked during an established
period of time, referred to as a “base period.”
Generally, this period is the first four out of the
last five completed calendar quarters prior to the
time the UI claim is filed.
Employees ineligible for Unemployment
Insurance:
Disqualification from UI benefits
vary from state to state, and the employee should
consult an attorney or the unemployment office before
pursuing his/her case.
Generally, if the employee quits
his/her job, he/she is not entitled to UI. To claim
UI after quitting a job, the reason should be for
a good cause—such as inhuman conditions
at the work place, or a bad incident that makes a
sensible employee quit. It doesn’t hurt to try
and collect UI benefits, but the situation has to
be pretty bad and the employer has to be given an
opportunity to correct the conditions. When the employee
belongs to a union and is covered by a collective
bargaining agreement, the help of the union can be
sought to correct the conditions or to determine whether
refusing to work under illegal or certain conditions
would be permitted under the labor agreement or the
law.
Good causes for quitting include:
 |
Hazardous working
conditions |
|
Failure to pay earned wages |
|
Illegal harassment |
|
Forced to engage in illegal
conducts. |
Engaged
in misconduct - If the person is engaged in
misconduct at his/her work place and fired
because of that, he/she is ineligible to apply for
UI. Generally “misconduct'' means mismanagement
of a position of employment by action or inaction,
neglect that places in jeopardy the lives or property
of others, intentional wrongdoing or malfeasance,
intentional violation of a law, or violation of a
policy or rule adopted to ensure orderly work and
the safety of employees. It does not include an act
of misconduct that is in response to an unconscionable
act of an employer or superior.
Severance
Pay - If the employer has paid a severance
package to the employee after his/her employment
was terminated, this might make the unemployed person
ineligible for UI claims. Severance is considered
as income. As part of severance pay, if the exemployee’s
name stays on the payroll for a certain number
of weeks after the termination of employment, this
makes the person ineligible for UI benefits.
In case of a lump-sum payment, the person may or may
not be entitled to UI benefits. If it is up-front
payment for a number of weeks, then the UI agency
will consider it to be salary continuation. For the
number of weeks of severance received, the person
will be ineligible to receive UI benefits. However,
it is better to keep ready the paper work and apply
for UI after the employment is terminated. If still
unemployed and severance pay ends, the completed paper
work can speed up the process of payment.
Union employees
- Union employees who lose their jobs because of a
labor dispute—strike, lockout, etc.—are
considered ineligible for UI by some states. In some
other states, there is a distinction made between
disqualifying strikes and lockouts that make employees
eligible.
Usually, unions have strike funds
that provide reasonable compensation for wages lost
from the strike. It is better to consult union representatives
to find out if it was a strike or a lockout, and what
the state law is with respect to that. If there is
any doubt, it is better to file for UI.
Whom to contact?
To claim UI, a local state unemployment
office must be contacted. The office will guide the
employee through the process of claiming unemployment
benefits (e.g., claim forms, documents required)
and should be contacted after termination of employment.
(You can apply for unemployment insurance with
the help of the form available on this site.)
Who are not covered by UI?
Those not covered include the self-employed,
independent contractors, casual employees, and farm
workers.
