I was laid off yesterday. If you are paid a lump sum severance, can you file for unemployment in MI once its paid out?
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When I was let go in 2019 the severance paperwork stated that if I filed for unemployment before my severance period had expired, 5 months in my case, Ford would contest the claim. Each round of layoffs seems to have different rules so read you severance package carefully. I received monthly payments and don’t remember being offered a lump sum option.
Let go in Aug and I applied for unemployment in May to get a jump start on payments. $362 per week for 20 weeks. You need to apply for jobs every week so I just apply to random engineering jobs that I know I will not get.
Severance is paid lump sum.
Is the severance paid as a lump sum? Someone told me it was paid monthly.
In Michigan, if the severance is paid as a lump sum (even if the lump sum represents some number of weeks or months of salary), then you are not eligible for severance in the week you receive the lump sum payment. If the severance is paid over a period of time, you are not eligible to receive unemployment payments until the severance pay period is complete.
https://www.fosterswift.com/communications-Unemployment-Compensation-and-Severance.html#:~:text=The%20Michigan%20Employment%20Security%20Act,worker%20is%20not%20eligible%20for
Yes. Unemployment is not affected by the lump sum. Severance affects it but not the lump sum.
These days you file online or you go in person?
i was terminated last august, i waited a month until i received severance and then i filed for unemployment and received it - also, depending on the state you live, you will also be paid your unused vacation - good luck, there is life after ford and it much much better - take a few days to grieve, get angry, whatever, then refocus and start interviewing
I waited until months of severance had passed the applied with no problem. However, when I spoke with UIA person, the payment coming as a lump sum and not distributed, they said I could have applied earlier. Additionally they said my last day of work was my last day, not extended for the severance.
Don't file until the severance period passed. You will be denied. I am telling you from my experience last year.
https://www.michigan.gov/-/media/Project/Websites/leo/Documents/UIA/Fact-Sheets/FS-125---How-Severance-Pay-Affects-Unemployment-Benefits.pdf?rev=242c78cf08814b1b9577af404ad30c3f#:~:text=The%20severance%20payment%2C%20like%20any,payment%20is%20allocated%20or%20distributed.
You can't file until the number of months you received as severance has passed.. Someone receiving 6 months lump sum can file after 6.months has passed.
File. The unemployment office will tell you if you cannot. In my state you sure can.