Unemployment – involuntary resignation
We often get questions such as this:
“Recently my employer expressed concerns regarding my health and performance. I had the option of staying on with a strong chance of being dismissed anyway, or I could or take the “golden parachute” and resign with a severance and on good terms. The company stated they would not contest my unemployment . Even though I would not meet any resistance from my former employer! will my unemployment compensation be denied because I resigned and was not terminated?”
The best answer is that if you voluntarily quit, you may not get unemployment. Your unemployment benefits are more likely to be paid if you get laid off. Ask to be laid off. Employers say they will not contest unemployment, but then they do so anyway. If you feel you must resign, ask for a written promise that the employer will not return the Department of Labor paperwork or answer phone questions from unemployment deputies and representatives.
Severance pay has its own complications, because the unemployment law treats severance like it is income from working. A month of severance pay will make you ineligible for a month of benefits.