Re: Transition from employee to consultant--any gotchas?

[MaggiRos <maggiros -at- yahoo -dot- com>]

I once got a lump sum severance from a Major Entertainment
Company who was not goign out of business, but had moved
most of a project to Europe without me. (They were not big
believers in using contractors, back then.) They laid me
and a lot of people off for lack of work. Nice severance
package, and a good thing, because I was then out of work
for quite a while. It did not impact my ability to get
unemployment (California), I presume because it was all one
check.

More recently, the company I worked for was radically
downsizing, selling off parts of the business, etc, and
laying of a lot of people. What we got was 8 weeks of
continued salary, just as if we were still working, but
without the tedium of coming  in to the office when there
was no work to do.  (This was, I believe, based on that
Federal big-plant-closing ruling that says they can't just
shut down and put everyone on the streets without notice.
The lay-off was big enough to qualify.)

But that wasn't severance. It was salary. Our official
termination date was when that 8-week notification period
ran out. *Then* we each got a severance check based on the
number of years of service, plus back vacation/sick pay,
etc. Up till then, we couldn't collect unemployment because
we weren't unemployed. After that--severance isn't salary.

And the checks were good, right down to the last penny.


Maggie



--- peemo -at- hotmail -dot- com wrote:

> 
> Dood wrote:
> > Severence does not prevent you from getting
> unemployment. 
> 
> Dood, the laws must be different wherever you live.  It
> does indeed
> prevent it--at least here in the Midwest.  That is in all
> the instances I
> know where the payments were made over the course of
> several weeks or
> months.  Unemployment did not kick in until two weeks
> after the last
> severence payment.
> 

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