In certain circumstances, severance pay is offered to staff after the end of their employment relationship. The amount an employee receives often depends on the duration of his work with the employer. Most employers have guidelines in their employee handbook describing how they handle severance pay. What does it mean in English? Obtaining severance pay does not disqualify a worker from unemployment benefit and the question arises whether the worker would be excluded from unemployment benefit because of misconduct or voluntary dismissal (voluntary dismissal), as in any other case. Obtaining wages instead of dismissal excludes the possibility of receiving unemployment benefits, but only for the period covered by the wages. At the end of this period, the worker may apply for and receive unemployment benefit, unless the employer can prove a disqualified qualification on the basis of fault. In the event of dismissal, you cannot defend the case on the basis of voluntary dismissal, since the issue of the threshold, even to bring you to a salary rather than a dismissal situation, is that the worker was dismissed against the worker`s will. As already said, companies are not required to pay redundancy payments, although most packages are provided on a case-by-case basis and in accordance with employment contracts. For example, receiving severance pay doesn`t affect your benefits in California, even if you receive them as a lump sum rather than in regular installments like a paycheck. Instead, the magic words are either „severance pay” or „wages instead of termination.” Understand the difference: First, let`s be clear: employers are not required to offer severance pay to laid-off employees, but many do so as a gesture of goodwill or to protect their own interests. If you sign severance pay, the payment to which you are entitled normally depends on certain conditions.
For example, you are often told that you must agree not to publicly denigrate your employer. In Texas, severance pay can delay or stop receiving unemployment benefits and payments are delayed until the payment coverage period expires. At the end of the day, the answer remains the same: an employer cannot negotiate an employee`s right to apply for unemployment. Since the Labour Act prohibits and criminalises agreements requiring employees to renounce their right to unemployment benefits, you cannot incorporate the agreement which explicitly states that the worker waives his or her right to unemployment benefits. The best thing you can do is add an additional sentence to the employment contract that says, „If the law allows, the payments in this agreement should be considered wages instead of the termination provided for in the Texas Unmployment Compensation Act.” Remember that if such a rate works, it only applies to the period covered by the payments. . . .