Discuss the advantages and disadvantages of unemployment compensation to the:
a. Employer - Having a system for providing transitional benefits
helps employers in several ways:
Employees laid off have an income
stream to help them transition into another job. It makes it easier on employers to let people go, payments for released employees are made by a third party, meaning contact with former employees stops. It also means former employees make claims for unemployment for termination for cause, meaning employers are much less likely to be sued for wrongful termination.
b. Employee- Having a system for providing transitional benefits helps employees in several ways:
There is a system in place for transitional benefits so loss of job does not mean poverty, but instead time to look for other employment. It also means one would be less likely to have to beg or otherwise lose one's dignity to have an income. It also means a third party will process that check every week, alleviating stress at a very stressful time. It also means there is a formal agency to approach for wrongful termination actions, without the significant cost of legal counsel.
2. Explain how an employer can pay a lesser rate than other employer? Do you think this practice is ethical? Why or why not? Employers who pay in to the system and do not have many claims for unemployment are asked to pay lower rates to insure current employees. They are lower risk employers, and it is of course ethical to reward employers (who do not need to lay off employees) for their efforts in hiring and retaining workers.
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