Severance Payments Preclude
individuals may receive unemployment benefits even if they have been or are
receiving severance as long as the severance is not viewed as extending
employment. For instance, an individual
would be disqualified from receiving unemployment for any period of time that severance
was paid in lieu of notice (e.g. employer was contractually required to give 60
days prior notice of termination but instead terminated without prior notice
and paid severance for the notice period).
On the other hand, a person receiving severance payments based solely upon
years of service is allowed to
concurrently collect unemployment benefits. This may change in the very near
future. In May 2012, a bill (A2654) was introduced in
UPDATE - Bill A2654 was abandoned.
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