Question

An employee of a mobile phone company was offered a voluntary severance package whereby the employee, in exchange for certain benefits, would no longer remain employed with the company. Although the employee was not required to apply for the severance package, and although the employee did not feel her job was in jeopardy, the employee applied for and accepted the severance package. After being separated from her employment with the telephone company, the employee filed for unemployment benefits. Will she be awarded unemployment benefits? Why or why not

Answer 1

An employee who took  voluntary severance package can be eligible for unemployment benefit only when the employee can prove that there was 'good cause attributable to work ' for leaving the job. The ' good cause attributable to work ' means fear of job loss or the company offering a different position or department where the employee cannot fit himself or herself or any such cause which forced the employee to take the voluntary severance.

In the given case, the employee had no fear of job loss , she was not asked to apply for the severance package and the employee voluntarily accepted the severance package in lieu of the benefits. Therefore, in this case there is no 'good cause attributable to work ' that led to the voluntary severance. Therefore , the employee will not be awarded unemployment benefits.