RM 400.00 Severance Pay

Click on the case numbers below to access decisions concerning whether employer payments at the time of, or following, a claimant's separation constitute disqualifying income. (If plant closing is an issue, see RM 200.00.)

BR-117146

BR-117146-A (May 25, 2011) – The claimant’s severance pay was disqualifying remuneration, because at the time he accepted his voluntary separation package, he did not sign a general release or relinquish a valuable right. Because a covenant not to compete had been part of a collective bargaining agreement entered into years prior to accepting the severance payment, it does not constitute a right relinquished at the time of separation. [Note: The District Court remanded the decision for additional evidence. Subsequently, the appellant defaulted and the case was dismissed.]