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LawTalk, Attorney
Category: California Employment Law
Satisfied Customers: 37772
Experience:  I have 30 years of experience in the practice of law, including employment law and discrimination law.
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If I accept a voluntary layoff but the employer states on the

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If I accept a voluntary layoff but the employer states on the separation agreement that my position was one eliminated due to restructuring am I eligible for unemployment compensation.
Good morning,

I'm Doug, and I'm very sorry to hear of your situation.

It doesn't matter whether you accept an agreed layoff (known as termination by mutual agreement), or your employer eliminates your position in a downsizing move and you are let go---the end result is that you are eligible for unemployment benefits under CA law.

The only way that you would not get them is if you were either terminated for cause---for violating policy or directions of the employer---or you quit your job.

You may reply back to me using the Continue the Conversation or Reply to Expert link if you have additional questions; and if you do, I ask that you please keep in mind that I do not know what you may already know or with what you need help, unless you tell me.


Please remember to press the smiley faces/stars on the right of your screen when we are finished with our communication so I will be credited for my time in assisting you. Kindly remember to ONLY rate my answer when you are fully satisfied. If you feel the need to rate anything less than OK, please stop and contact me with whatever issue or clarification you may need. I will be happy to continue further and assist you until I am able to address your concerns to your satisfaction.

I wish you the best in 2013,

Doug
Customer: replied 4 years ago.


The facts are my position is not one that is being eliminated but for employees that are close to retirement age, the company is offering a voluntary layoff separation so that other people can keep their job, so it includes a severence package. I don't have to take it but if I do I am concerned I won't be able to collect unemployment although all the separation agreements read the same, position eliminated due to restructuring

Customer: replied 4 years ago.


03, 2013 2:08 PM EST



The facts are my position is not one that is being eliminated but for employees that are close to retirement age, the company is offering a voluntary layoff separation so that other people can keep their job, so it includes a severence package. I don't have to take it but if I do I am concerned I won't be able to collect unemployment although all the separation agreements read the same, position eliminated due to restructuring



Good morning Fran,

You will still qualify for unemployment if you agree to accept the layoff. it will still be considered a termination by mutual agreement under CA law and you will get your unemployment.

As you are getting a severance package there is one more thing you need to be aware of. Keep in mind that if any money that you receive in your severance package is not stated in a writing as compensation for you giving up any rights you might have to sue the employer---if it is simply a lump sum of money, then unemployment will consider it wages and you will be ineligible for unemployment benefits until the number of weeks has passed which equals the weekly pay you received before termination divided into the amount of severance pay you receive. If you have to give up the right to sue, in writing, in order to get the severance, then you will be eligible for unemployment immediately.


You may reply back to me again, using the Reply to Expert link, if you have additional questions.

Until you rate me highly for my service, I will not be credited with helping you. Would you please rate me now, based on my assistance to you in understanding the law.

I wish you the best in 2013,

Doug
Customer: replied 4 years ago.


It states: Employee understands and agrees, employee is giving up and waiving forever any claims or right against company or directors etc

Hi Fran,

You wrote: It states: Employee understands and agrees, employee is giving up and waiving forever any claims or right against company or directors etc. That qualifies as a waiver of right to sue, so you will get unemployment immediately.


You may reply back to me again, using the Reply to Expert link, if you have additional questions.

Until you rate me highly for my service, I will not be credited with helping you. Would you please rate me now, based on my assistance to you in understanding the law.

I wish you the best in 2013,

Doug
Customer: replied 4 years ago.

Thank you. One last question. What is the correct terminology to use as reason for leaving job when applying for unemployment benefits for my situation

LOL. You get a hold, and don't let go. You would make a good litigation/discovery attorney, Fran! Cool

Termination by Mutual Agreement is the magic language for EDD. Look at section "F" of the EDD document I have linked to here:

http://www.edd.ca.gov/uibdg/Voluntary_Quit_VQ_135.htm

Best of luck in your future endeavors,

Doug


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