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Old 01-07-2009, 08:38 AM
 
5 posts, read 39,099 times
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Default The effect of a severance package on umemployment

Does anyone know if you get a lump sum severance package can you still collect umemployment in nj. I am getting offered a package and working until june 30th. My plan is to collect unemployment after I stop working and I just heard that the severance package could cause me not to be able to collect benefits.
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Old 01-07-2009, 09:36 AM
 
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Typically your unemployment compensation will only kick in after you severance runs out.

For example:

Say your last day of work is June 1 and your company gave you a 4 week severance package.

You could not start collecting unemployment from the state until after those 4 weeks were up. (July 1)

Does that make sense?
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Old 01-07-2009, 09:49 AM
 
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It may depend on whether it's a severance package or a "rights waiver." There are some companies who call their package a severance package, but you don't receive it until some specified number of days after you've been released. And, in order to receive it, you cannot have accepted a new position during the wait period and you must waive your right to sue the company that has downsized you. In a case such as this, I've heard that you can apply immediately since it's not a pure severance package, but rather a strings-attached, lump sum payment for signing away your right to pursue legal action.
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Old 01-07-2009, 11:07 AM
 
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Quote:
Originally Posted by JTGJR View Post
It may depend on whether it's a severance package or a "rights waiver." There are some companies who call their package a severance package, but you don't receive it until some specified number of days after you've been released. And, in order to receive it, you cannot have accepted a new position during the wait period and you must waive your right to sue the company that has downsized you. In a case such as this, I've heard that you can apply immediately since it's not a pure severance package, but rather a strings-attached, lump sum payment for signing away your right to pursue legal action.
You need to read the document..according to mine, I can apply for unemployment while receiving the severance..and I will be able to collect both ...
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Old 01-07-2009, 11:28 AM
 
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I think it depends on the state too. I am in NYC, and when I was laid off previously, I was able to collect unemployment and still get my severance. I wasn't sure neither, so I called and spoke with a rep and manager and both confirmed it was fine. Although I was collecting a package, they said they do not consider it working if I have a letter that said I was being laid off as of a specific date, and I would be able to collect unemployment after that date specified.
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Old 01-07-2009, 12:16 PM
 
222 posts, read 534,836 times
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Quote:
Originally Posted by danameless View Post
I think it depends on the state too. I am in NYC, and when I was laid off previously, I was able to collect unemployment and still get my severance. I wasn't sure neither, so I called and spoke with a rep and manager and both confirmed it was fine. Although I was collecting a package, they said they do not consider it working if I have a letter that said I was being laid off as of a specific date, and I would be able to collect unemployment after that date specified.
this is my situation as well..
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Old 01-07-2009, 03:02 PM
 
Location: NW San Antonio
2,519 posts, read 5,437,698 times
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a lump sum payment of severance, is just that, lump sum, you get it, and you collect ue benefits, all those questions come up every time you apply for bi-weekly benefits. and also when you first apply for benefits, along with the seperation packet the company gave you. read all the fine print, take it to the workforce rep, let them review it with you if you still have doubt. don't put yourself in a bind and have to pay anything back in a few months.
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Old 01-09-2009, 10:51 AM
 
Location: Denver, Colorado U.S.A.
10,822 posts, read 12,181,193 times
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I was layed off 4 years ago and got something like 3 months severance pay. It had no effect on my unemployment benefits though. I think there was a two week waiting period, then I was collecting benefits for 6 months. This was in California.
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Old 01-09-2009, 11:10 AM
 
Location: Moose Jaw, in between the Moose's butt and nose.
4,416 posts, read 4,207,960 times
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It depends on the state, but because most of the time those are considered gifts, they won't effect your UI benefit.
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Old 01-13-2009, 04:02 PM
 
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I was laid off from a NJ job and received a lump sum package from my prior employer, and was eligible to collect unemployment shortly afterwards - didn't seem that my lump sum had any effect on it.
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