What is considered an employer-initiated severance?

Employer-initiated severance from employment generally includes any severance from employment, even if caused by an event outside of the employer's control, such as economic conditions. Some examples include closure of a business division or layoffs due to loss of business.

Even if the employee left voluntarily, they may be eligible if their resignation was due to a “constructive discharge”. Factors considered when evaluating whether a constructive discharge occurred include the employer's intent, employee's working conditions and the reasonably foreseeable impact of the employer's treatment of the employees. Some examples include a situation where the company announced that business was slowing, and the employee sought other work in anticipation of being laid off. Employees who were subject to “constructive discharge” will be counted in determining a partial plan termination.

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