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Accepted voluntary separation package and was denied unemployment benefits.

In an effort to cut costs and downsize, my PA employer offered voluntary separation packages and indicated they would not dispute any unemployment compensation benefits to all who applied. I was denied unemployment benefits on the basis that I voluntarily took the package and could not prove that my job was in jeopardy if I did not take the package. I have to submit an appeal letter. Any suggestions?



Hi,

Ironic isn't it, that employees often hearing those words. "We won't dispute your claim for unemployment" and think that means .. that's the only reason an employee is denied benefits.

Unemployment benefits after accepting a voluntary separation package as part of an employer's workforce reduction plan may, or may not be disqualifying .. depending on the conditions stated by an employer if you refuse the generous offer. (Best to referebce a state's UI law before you accept the package.

However, having said this, "a package", usually includes money as a severance, which may, or may not be deductible income from any benefits you qualify for .. even if received in a lump sum because it constitute wages paid, in return for resigning.

But, not filing an unemployment claim cannot be a condition of any severance, or separation agreement .. unlike other more costly to an employer rights I signed away when I was laid off.

There is a whole section on deductible income from UI benefits in the non monetary chartbook at the USDOL, comparing state by state, the unemployment laws.

The link to the USDOL where the latest updated chartbooks will be found is on the unemployment law and resource page.

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