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How to Protect Your Business From Employees Collecting Unemployment

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    • 1). Only terminate employees for misconduct, if possible. Letting an employee go due to lack of money or work allows the employee to qualify for unemployment benefits.

    • 2). Keep documentation on employees when misconduct occurs. Write up a warning if your employee breaks a rule, and inform the employee of the write-up.

    • 3). Write out a document when you fire an employee. Make sure the document lists the reason the employee was fired, and have the employee sign it.

    • 4). Fill out the notification form if or when it arrives, alerting you that the former employee has filed for unemployment benefits. When you fill out this form, it may become clear to the unemployment agency that the former employee has provided a false reason for termination, which disqualifies him from collecting benefits.

    • 5). Go to any hearings the unemployment agency holds, and bring all your records and documentation of the employee's history and termination.

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