Facility shutdown, vacation and unemployment — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

Facility shutdown, vacation and unemployment

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Q. Our facility shuts down for two weeks at the end of the year, and we send most employees home without pay during that time. This is the only vacation time available to the employees sent home. Are those employees eligible for unemployment compensation during the furlough?

A. No. The North Carolina Employment Security Law provides “that no individual shall be considered available for work for any week not to exceed two in any calendar year in which the Commission finds that his unemployment is due to a vacation.”

This holds true whether the vacation is a traditional, voluntary vacation or part of a mandated shutdown.

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