Unemployment Compensation
questions & answers
Question: I was laid off and filed for UI April, 2011. I received a Severance Package from my employer that payed me my salary for a period of 7.25 months in a lump sum. Unemployment originally approved me receiving UI Compensation in April 2011. They reversed their decision when I applied in November 2011 for Federal extension. They based the reversal on ARS 23-621 and A.A.C. R6-3-55460 B. DES contends these codes deny UI for anyone while they receive Severance. They do not. Please take a look. My sorting out of the mess my claim is in continues to this day. I was referred to you by Channel12
Answer:
Generally, a severance package will disqualify an individual from receiving unemployment because it is viewed as income for a given amount of time. Per ARS 23-621(C): “An individual shall not be deemed "unemployed" if the individual is receiving wages in lieu of notice, dismissal pay or severance pay.” The entire statute is available for reference here (http://www.azleg.gov/FormatDocument.asp?inDoc=/ars/23/00621.htm&Title=23&DocType=ARS). However, you may still qualify for unemployment, depending on the terms of this severance pay or provisions of any employment contracts.
Due to the specific nature of the dispute, only an attorney can determine what benefits you are eligible for under Arizona law. To find out how the law applies to a specific situation, contact an attorney directly
QUESTIONS
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I was laid off and filed for UI April, 2011. I received a Severance Package from my employer that payed me my salary for a period of 7.25 months in a lump sum. Unemployment originally approved me receiving UI Compensation in April 2011. They reversed their decision when I applied in November 2011 for Federal extension. They based the reversal on ARS 23-621 and A.A.C. R6-3-55460 B. DES contends these codes deny UI for anyone while they receive Severance. They do not. Please take a look. My sorting out of the mess my claim is in continues to this day. I was referred to you by Channel12
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