Unemployment resulting from taking advantage of a severance package or an early retirement incentive does not constitute good cause for leaving one's employment
Rubscha (Commissioner of Labor), 2013 NY Slip Op 02609, Appellate Division, Third Department
Robert F. Rubscha’s employer had instituted a voluntary reduction in force program in an effort to avoid eventual layoffs. Although Rubscha, who had been employed for 29 years, had no information that his job would be eliminated, he nevertheless accepted the severance package offered by his employer out of concern that he or his coworkers would be laid off.
When Rubscha filed for unemployment insurance benefits the Unemployment Insurance Appeal Board ruled that Rubscha was disqualified from receiving unemployment insurance benefits because he voluntarily left his employment without good cause.
The Appellate Division sustained the Board’s determination, explaining that leaving a job in order to take advantage of a severance or early retirement package when continuing work is available does not constitute good cause for leaving one's employment.
In addition, the court noted that substantial evidence supported the Board's finding that Rubscha received retirement incentives identical to those that he would have been provided had he been laid off and that, as a result, he lacked "a compelling financial incentive to leave his job."
The decision is posted on the Internet at:
http://www.nycourts.gov/reporter/3dseries/2013/2013_02609.htm