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10 Unemployment Compensation Factors That Affect Payouts

Business Management Daily (04/03/12)

How much a company pays for unemployment insurance is partially based on how many former employees successfully file claims against it. Therefore, companies must understand the unemployment laws in each state in which they operate. They should also be aware that employees can quit and still collect unemployment. If an employee resigns because the employer changed working hours or locations, state officials may deem the termination an “employer-caused discharge” and approve benefits. Underperforming workers fired for chronic tardiness or missing deadlines could successfully argue that they did their best and did not try to let down the firm. Unless the employer can prove the worker was intentionally doing a bad job, the worker will likely be eligible for benefits. Ideally, termination should be based on something other than “poor performance,” such as “deliberate and willful misconduct.” Employers need to document that they tried to retain the worker by offering counseling and issuing warnings.