If I have been offered a severance package with benefits for 3 months and the company will not contest unemployment benefits, will I be able to collect benefits right away or wilI I have to wait?

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If I have been offered a severance package with benefits for 3 months and the company will not contest unemployment benefits, will I be able to collect benefits right away or wilI I have to wait?

Would I collect the whole period that would normally be granted or would it be reduced because of the severance package?

Asked on September 11, 2015 under Employment Labor Law, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

Generally, it depends on how the package is structured. If you get a lump sum payment, you can collect unemployment right away usually. But if you are being paid over time, as if still on payroll or by actually being kept on payroll, you can't receive benefits until the payments cease. However, at that point, you can generally get the full period time its as if your employment terminated when your paid-over-time severance ran out.


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