10 Days to Minimizing your Unemployment Costs: Tip 4

Tip 5: Know the difference between voluntary resignations, discharges, and lack of work claims.

In almost every state, a voluntary resignation, especially for non-compelling reasons, usually disqualifies the employee from receiving unemployment benefits.

But there are significant exceptions because some states may allow benefits for a quit with “good cause.”

Here are some good things to remember:

In a voluntary quit, the burden of proof rests with your former employee.
A discharge for misconduct is legally defined as willful misconduct connected with your work that resulted in a tendency for damage to your nonprofit interests.
A discharge in which you initiate the termination puts the burden of proof on your nonprofit. Make sure you have the right documentation on hand for at least 18 months.
Always avoid the words “unsatisfactory performance” in cases where the employee is able to perform the job, but is negligent of performing their duties. This term has a legal definition of an employee who is unable to perform the job, and will likely result in benefits awarded to the claimant.
In discharges due to misconduct, be prepared to provide documentation of the final incident that led to the discharge.

And never, ever forget, lack of work claims are the very reason unemployment insurance exists. They provide benefits to employees who, through no fault of their own, are separated from work. But to get any award, claimants must be able to work, available for work, and actively looking for work.

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