Why would a company terminate you and tell you that you are rehirable and to reapply in 6 months and then deny you unemployment benefits and earned PTO?

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Why would a company terminate you and tell you that you are rehirable and to reapply in 6 months and then deny you unemployment benefits and earned PTO?

Is this legal?

Asked on October 27, 2012 under Employment Labor Law, Minnesota

Answers:

B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Much of this just has to do with the bottom line and business practices.  If someone calls to do a reference check-- many companies will just automatically say yes to the 'rehireable' question to avoid any defamation suits later.  It's a risk reduction practice.

As far as the unemployment question-- the same principle applies.  Some employers consistently oppose the payment of benefits because they don't want to be charged with the expense later.

Basically, both relate to the business potentially losing money.  It sounds conflicting, but can be reconciled when the objective of both policies is to save the employer money.  Even though somewhat conflicting, an employer can legally terminate someone, note they are rehirable, and then oppose unemployment benefits. 


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