1. Theopinions and comments expressed on this articleareopinions,not counsel solelythoseoftheauthor(s)and do not necessarily represent thoseofthecompany.
Useany advice, tips, techniques,orrecommendations at yourown risk.CertiPay encourages individuals to seek appropriateprofessional counsel.
Ofelia Gil Clare Vazquez
Reemployment AssistanceManager HR Business Partner
CertiStaff CertiPay
HRNEWS APRIL2015
How can my Company control its unemployment costs?
I have never heard a clienttell me “how excited they are to terminate an employee” no matter the circumstances.
No one wants to have to terminate employees or implement a reduction in force (RIF), but sometimes it’s an
unavoidablenecessity. Mostof the time I hear a company has been unsuccessful fightingan “unemployment claim”.
BE PROACTIVE! It’s important to have a good strategy in place to minimize your liability and manage your
unemployment claims. Claims can causeyour company’s experienceratingto be re-evaluated and to rise. It can be
time consumingand frustratingprocess. Losing justone claimdisputecan costthousands of dollars,which can be
devastating to many businesses, especially in today’s troubled economic times.
There are ways to manage the impact of a termination or layoff and reduce the impact to your business by:
 Auditing unemployment charges,
 Improving hiring practices,
 Proving misconduct; and
 Thoroughly documenting employee terminations.
At CertiStaff, Ofelia Gil is our Reemployment Assistance Manager who recommends the following strategies to
reduce an unemployment claims.
Hiring Practices
One way to curb unemployment expenses is to hire right the first time by carefully screening all applicants and of
course, avoid a negligent hire. To keep costs down, industries with high turnover and seasonal employees should
invest in retention initiatives and better pre-employment screenings. Job fit is as important as good work history
and references.
Proving Misconduct
Disqualifyingan employee from unemployment is not as easy as you may think. To say that an employee violated a
Company policy isnotenough.The employer will need to showthat the employee knew and was awareof the policy,
and in some instance given the chance to improve.
 Focus on the most serious offenses
 Consider alternatives before termination i.e. suspension without pay
 Make sure the behavior is documented
Termination due to Performance
Another example is Performance,which Performancealonewill NOTdisqualify an employeefromreceivingbenefits.
Proper documentation is required and the employer should show that he/she gave the employee the opportunity
to improve in the areas thatemployee was lacking.Otherwise,adjudicator’s decision will bein favor of the claimant
stating the employee “Performed his/her job to the best of their ability”.
You have the right to terminate for poor performance, BUT

2. Theopinions and comments expressed on this articleareopinions,not counsel solelythoseoftheauthor(s)and do not necessarily represent thoseofthecompany.
Useany advice, tips, techniques,orrecommendations at yourown risk.CertiPay encourages individuals to seek appropriateprofessional counsel.
Ofelia Gil Clare Vazquez
Reemployment AssistanceManager HR Business Partner
CertiStaff CertiPay
 Exhaust other possibilities before resorting to termination
 Document performance for all employees
Termination is a difficult and serious decision
 Co-workers will be affected
 You will be affected
 Production may suffer
 Wrongful discharge claims may be filed
 Unemployment compensation experience increases
Termination preparation = Progressive discipline
One way to avoid paying unemployment benefits is to implement a progressive discipline plan and keep detailed
documentation. The employee's history should show an increasingproblem,along with the steps taken to address
the problem. In unemployment hearings,first-hand witness testimony and excellentdocumentation can supportthe
employer's discharge decision.
The four steps of progressive discipline include:
 Oral warning
 Written warning
 Suspension
 Discharge
Key Points to Remember
 Terminating an employee is one of the most difficult and serious tasks you face
 Be certain you have exhausted all other possibilities before deciding on termination
 Make sure you documented you case for termination accurately and completely
 Make sure you understand the legal and policy restrictions on termination
 Follow Company policy procedures carefully when terminating employees
 Remember that it is easier to make good hiring decisions than resort to firing
Preparation for defense does not start at notification of a claim. Preparation begins at the hiring process.
Document, Document, Document!
Finally,conductexit interviews with employees whenever possible.Duringthe exit interview, the Company should
have the employee sign a document statingthey understand why they were terminated. For voluntary terminations,
the Company should keep copies of employee resignations and or signed statements from employees that indicate
the reason for departure.
At CertiPay, we have unemployment costmanagement to our listof human resourceand payroll services.Now our
clients can rely on CertiPay to handlethe administration of all of their unemployment claims,provideconsultation
and representation at all hearings and auditevery benefit charge. For more information contact ClareVazquez at
561-910-0032 or email cvazquez@certipay.com