We’re frequently asked whether someone who’s receiving a severance package can still claim unemployment, and that really depends on how the severance package is structured. Let me give you an example. If you have a severance package where you are entitled to a lump sum payment, then as soon as you receive that payment you can apply for unemployment and collect. On the other hand, if you have a severance package which is essentially keeping you on the payroll for say 10 or 12 weeks, then you’re considered employed for the duration of that severance package and cannot collect unemployment on top of your severance.
This short informational blog was provided by Allan Richardson, a New Jersey Severance Package Lawyer. Please contact the law firm with any questions you may have and set up your initial consultation.