Unemployment Road Map
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Severance Pay and Unemployment

Whether severance pay will delay or reduce your unemployment benefits depends on the agreement you signed.

If you are given severance pay with no strings attached, this will be considered continued income and you will not be eligible for unemployment until it is exhausted.

If, however, you are required to sign a release of legal claims in exchange for the severance, it does not count against your unemployment.  This means you can apply right away, even while receiving severance payments.

You will have to report the income, and you may have to provide a copy of your severance agreement to the DUA to prove that you signed a release of claims.  The severance may also result in an initial denial....

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The information provided on this site is for educational and informational purposes only. It is not individualized legal advice, nor is it intended to or does it create an attorney-client relationship. Results of your unemployment application may vary, and are not guaranteed.  Slnlaw attorneys are listed on the about page, and are licensed in the Commonwealth of Massachusetts. 
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