Tips & info

Lay-offs or staff reduction

March 2006

The two types of involuntary terminations that will allow a claimant to collect unemployment benefits are lack of work and poor performance. An employee's poor performance should not be considered misconduct if there was no willful disregard of your company's rules or policies.

Lack of work – A permanent or temporary absence of available work due to a reduction in the work force will allow the claimant to collect unemployment benefits.

While a reduction in employment usually qualifies claimants for benefits, keep in mind:

  • Failure to return from a temporary layoff should be reported as a voluntary quit.
  • Offers of suitable employment should be reported as a refusal of employment if not accepted. Duties, hours, pay, and location of the offer must be documented. (Notify your Claims Manager immediately as the refusal may result in a disqualification for benefits.)
  • Reduction in hours as a disciplinary action may give the employee good cause for quitting. Use your company's progressive disciplinary policy to correct problems.

Poor performance – The inability to meet company standards of performance will allow the claimant to collect unemployment benefits.

The following issues should be considered:

  • If a new employee is incapable of meeting your company's standards, termination should take place as soon as possible. This may minimize or eliminate your liability.
  • Poor performance, inability (for whatever reason) to meet company performance standards, should never be used to characterize a willful or deliberate violation of company rules. If the employee's actions are within his control the termination should be described as misconduct.

Note: Other employer-initiated terminations will usually fall into the category of misconduct, but there are some exceptions. Call your Claims Manager for special or unusual cases.

Call your UC Express claims representative for assistance!
Malie Salas Amy Darboe
Claims Representative Claims Representative
(800) 955-4351, ext. 5 (800) 955-4351, ext. 3
Direct Fax: (866) 226-2359 Direct Fax: (866) 229-1320
Email: Msalas@talx.com Email: Adarboe@talx.com