Layoffs are difficult for employees and employers alike. For workers, layoffs mean economic hardship, even if they’re receiving unemployment benefits. For employers, there’s always the threat that they’ll lose valuable employees who feel they can’t afford to wait to be called back—and instead go out and find other jobs.
In these tough economic times, some employers are trying to help employees during layoffs and help prevent the permanent loss of good employees by implementing supplemental unemployment benefit plans.
Extra pay, beyond unemployment
Supplemental unemployment benefit plans are a unique type of severance plan designed to assist employees following an involuntary termination or layoff. Supplemental plans allow a company to pay cash benefits to employees while they are laid off, without reducing their state unemployment benefits. They also minimize tax withholding.
That’s different from most severance pa...(register to read more)