I received a severance package for a release of claims, am I still eligible for UI benefits during weeks unemployed?

My job downsized and had me sign a release of claims document before laying me off for 4 weeks pay. The release of claims revoked my rights to sue, signed a non-compete and gave them ownership to my work I created for them. I applied for UI benefits still, am I still eligible to receive benefits for those 4 weeks pay if unemployed, even with the package because I signed over those rights? TWC said that I am approved to receive benefits but I have been playing phone tag with a TWC agent who had questions about my

Asked on December 26, 2018 under Employment Labor Law, Texas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 1 year ago | Contributor

You cannot receive UI during the weeks you are still receiving pay pursuant to or as part of your separation agreement; you can start receiving unemployment insurance benefits once you stop receiving pay from the company. (Severance, for this purpsose, is considered the same as getting wages or salary for that time.) So this will delay your UI, but not make you ineligible. 

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