Q. We recently decided to conclude a long-time worker’s employment with our company. We gave the employee the option of resigning instead of being fired. She chose to resign and is now trying to collect unemployment benefits. Is she still eligible even though she resigned?
A. It depends on why your company decided to terminate the employee. An employee who resigns will generally be denied benefits (absent a good reason to quit that is attributable to the employer). But in determining eligibility for benefits, the Minnesota Department of Employment and Economic Development (DEED) looks beyond the “resignation” label to the facts and circumstances surrounding the end of the employment relationship.
If in actuality the employee had no ability to continue working because your company was going to terminate her employment, then the DEED will most likely classify it as an involuntary termination and will determine eligibility based on whether or not the employee was terminated because of misconduct.
If the employee’s employment was terminated for some reason other then misconduct, then the employee will be eligible for benefits.