Total and Partial Unemployment TPU 460.35 - Fact Finding Guide

Severance Pay, Dismissal or Separation Pay

  1. 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.?
  2. Was the extra pay received at the time of retirement?
  3. 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?
  4. Was the pay given only to those employees management decided it wanted to pay? If so, this pay would be considered as a bonus.