Total and Partial Unemployment TPU 460.35 - Fact Finding Guide
Severance Pay, Dismissal or Separation Pay
- Does the pay fall within the provisions of Section 1265 of the Unemployment Insurance Code? For example:
- Is there a plan or policy?
- Are the payments available to a class or group of employees?
- Is the purpose of the payment to supplement UI benefits, e.g., provide additional financial assistance while seeking work, cushion the sudden job loss, provide a bridge between jobs, etc.?
- Was the extra pay received at the time of retirement?
- Was the pay a result of a collective bargaining agreement whose intent was to keep the employees from leaving employment before the planned separation date?
- Was the pay given only to those employees management decided it wanted to pay? If so, this pay would be considered as a bonus.