Employee’s who quit are not necessarily eligible for unemployment benefits. When you use ambiguous language during a disciplinary session or termination, it can result in an unwarranted claim for unemployment benefits. In this economy, the Employment Development Department is overwhelmed, insolvent and not capable (or desirous) of helping small business owners fight undeserved claims for Unemployment Insurance (UI) Benefits. This, coupled even with a minor misstep during a termination can result in unwarranted benefits being paid out to former employees. What can you do? Approach each disciplinary situation and termination with caution and determination to get it done right.
Let’s look at a couple ways to increase your odds of winning every UI case by eliminating some of the traps that employers face.
Bad Example
You bring an employee in for a counseling session and he gets up and says, “Well if you don’t want me to work here, then just fire me!” and you respond “Fine! Leave then, if that’s what you want!” The employee leaves and files for UI. Employee wins because of a lack of clarity on the employer’s part. Sounds nutty, but it’s happened before, maybe to you!
Be Decisive
When you’re dealing with employees in a disciplinary or termination situation, be clear, be decisive and make sure that you document everything including what the employee said, what you said and their responsive actions. Always have the employee sign documentation that clearly defines the employment action being taken. Never leave the decision up to the employee.
Other Situations
Employees that have moved away, or – for some other reason – no longer have reliable transportation to work, may have a reasonable justification to quit, and they may still receive UI benefits. If an employee seeks to leave his/her position due to something like a relocation or a transportation issue, be sure to make every attempt to accommodate their needs and determine if there is anything else causing them to quit. You may be able to help them continue employment with you if you so desire, but having complete information and attempting to assist the employee may persuade the UI judge to rule in your favor.
If an employee is deserving of and entitled to unemployment benefits, you should not attempt to prevent their claim from continuing. However, in today’s economy, we frequently see employees seeking UI benefits for unwarranted employment separations, and this will cost you in the long run.
Don’t let employees take advantage of the overburdened UI system. Take the time to protect your business.
