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Voluntary Resignations vs. Discharges: Key Factors in Unemployment Claims

By July 30, 2024October 25th, 2024Blog

Whenever an employer-employee relationship ends, there is a reason behind the separation. This separation reason is a key driving factor in the unemployment claims process and will help determine if an individual is considered qualified for unemployment benefits.

While it is always important (and required) to accurately reflect the reason for separation, it is also important to understand the different categories of separation reasons and how (and why) certain reasons may be more challenging than others in obtaining a favorable determination.

In this issue, we dive into all things separation reasons and best practices to help ensure you are prepared throughout the employment relationship, including when initiating a separation and when an unemployment claim is filed.

Voluntary Resignation Versus Discharge

There are two main types of separation reason categories: voluntary resignations and discharges. Both present unique challenges and have specific requirements at the unemployment level, including burden of proof.

In a voluntary resignation, the burden of proof falls to the claimant. While precedent and actual requirements vary state to state, generally, in these instances, the claimant will not be eligible for unemployment benefits unless good work-related cause can be proven. They must also have exhausted all reasonable remedies prior to resignation.

For a discharge, the burden of proof falls to the employer. Again, precedent and requirements vary by state but in all instances, misconduct must be proven by the employer to disqualify an individual from benefits after a discharge.

Non-Protestable Separations

A further subdivision of separation reasons divides separations into protestable and non-protestable categories. While most separation reasons are considered protestable and a determination will be issued based on the merits of the individual case, there are a number that are considered non-protestable and an individual will be granted benefits if they meet all other qualifications. The most common non-protestable separation reasons are associated with a lack of work.

However, there are also additional state nuances that can lead to non-protestable separation reasons—but only in those specific states. These states have written laws and precedents that indicate specific circumstances under which an employer will not be relieved of charges where they otherwise might.

Relief Not Allowed by State Law Examples

California – If an individual voluntarily resigns to relocate with their spouse, the individual will be granted benefits, and the employer will be charged.

New York – If an individual voluntarily resigns to accept other employment, the individual will be granted benefits, and the employer will be charged.

Attendance

In some states, it is written in the state law that, in cases where the final incident (absence/tardy) was beyond the claimant’s control, the claimant may be eligible for benefits and the employer will be charged.

When a separation reason is protestable, it is imperative to have details, documentation, and (ideally) firsthand witnesses that make the separation – particularly the final incident – defensible.

How To Make a Strong Case

The strongest separation reasons will inherently be those with appropriate details and documentation to support the separation. Therefore, it is important to maintain accurate and thorough records throughout the employment relationship.

A discharge will require the most detailed information and documentation in order to obtain a favorable outcome.

  • Detailed explanation of the final incident.
  • Copies of any prior disciplinary actions – most importantly, write-ups related to the final incident.
  • Copy of policy violated and a signed acknowledgement.
  • For attendance cases, a copy of the claimant’s attendance record

While the burden of proof may fall on the claimant after a voluntary resignation, it is still important to have appropriate documentation for those separations as well.

  • Letter of resignation
  • Written statement from the individual the claimant notified of resignation.
  • What efforts, if any, did the claimant pursue prior to quitting?
  • What was the resolution to the issues raised?

Challenging Separations

Typically, unsatisfactory work performance and isolated incidents of poor judgment (even if a violation of company policy) are not considered disqualifying as they are not viewed as misconduct. However, if it can be proven there was an intentional disregard for the employer’s interests or a repeated pattern of negligent behavior, benefits may be disallowed.


About Us

For more than 40 years, 501(c) Services has been a leader in offering solutions for unemployment costs, claims management, and HR support to nonprofit organizations. Two of our most popular programs are the 501(c) Agencies Trust and 501(c) HR Services. We understand the importance of compliance and accuracy and are committed to providing our clients with customized plans that fit their needs.

Contact us today to see if your organization could benefit from our services.

Are you already working with us and need assistance with an HR or unemployment issue? Contact us here.

The information contained in this article is not a substitute for legal advice or counsel and has been pulled from multiple sources. Some information was provided by our friend, Darby Gibson, Client Marketing & Insights Specialist, at Thomas & Company.

(Images by Kuprevich and Tete Escape)

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