Unemployment – Employee Who Accepts Early Retirement Package Is Not Barred From Receiving Unemployment Compensation Benefits

In today’s world where layoffs are becoming common place and unemployment laws are increasingly more restrictive, a recent decision of the Supreme Court of Pennsylvania helps employees who accept early retirement. The Court held that an employee who accepts an employer’s early retirement package is not barred from receiving unemployment compensation benefits and the “voluntary layoff option” (“VOL”) provision in the Unemployment Compensation Law, 43 P.S. §802(b) applies to an “otherwise eligible claimant” who accepts an early retirement plan offered pursuant to an employer-initiated workforce reduction. In Diehl v. Unemployment Compensation Board of Review, 2012 Pa. LEXIS 3012 (Pa. 2012), the Supreme Court reversed a Commonwealth Court decision and held that the unemployment law does not preclude unemployment benefits to those who accept early retirement plans offered pursuant to employer-initiated workforce reductions. Over the past several years we have seen several clients elect early retirement benefits under operating under the assumption that they could then receive unemployment benefits and then clients have had to fight when they were initially turned down. In today’s environment the Diehl decision is a welcome decision in favor of employees.

For more information about Pennsylvania Unemployment Compensation Claims and Abramson Employment Law see http://www.job-discrimination.com/lawyer-attorney-1491925.html.


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Filed under Employment Law, Unemployment

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