Question
When an employee loses their job, they can apply for benefits through unemployment insurance. These benefits will provide the employee with some income while they
When an employee loses their job, they can apply for benefits through unemployment insurance. These benefits will provide the employee with some income while they look for another job. The unemployment insurance program is largely funded by taxes on employers. Employers pay based upon their "experience rating." In other words, as more employees from a company make claims against unemployment insurance, an employer's experience rating goes down, and their unemployment insurance costs increase. Employers have the right to contest an unemployment insurance claim if an employee was fired with just cause (e.g. poor performance, absenteeism, stealing). Contesting unemployment claims can help an employer protect its experience rating and reduce costs, but it can negatively impact former employees by limiting their access to benefits. As a manager or HR manager, would you choose to contest the unemployment claims of fired employees? Why or why not? Are there different factors that would influence your decision? As a person entering the job market, how would knowing that an employer contests unemployment claims impact your perception of the employer?
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