Q. We told an employee we probably would be replacing him within the next month. He quit and filed for unemployment. Under what circumstances do we have to pay unemployment?
A. Generally, an employee who leaves work “voluntarily without good cause attributable to the employer” is not eligible for unemployment, while those who are discharged or let go through no fault of their own are eligible. The employer has the burden of proving the employee made the decision to leave and that the employee’s decision was not the result of some employer action.
It would appear that your employee may be eligible; as you already had informed him his services would no longer be needed.