A person I know was laid off during an extensive round of lay-offs at their former investment bank. Their former employer called them about their U5 and asked if they wanted to agree that...
A - They were terminated.
vs
B - They voluntarily left.
The employer said that unemployment offices do NOT see the U5 form, only other investment banks. Hence, they would not lose unemployment benefits. Also, it would look better to other banks, that this person may be interviewing for a job at in the future, that this person voluntarily left vs was terminated.
In sum, the former employer wants this person to agree in writing they left voluntarily during the lay-offs vs was terminated.
Can anyone provide some insight here? Is it better to have on your U5 that you voluntarily left vs you were terminated? Will what your U5 say affect your unemployment benefits at all?
This also all took place over the phone and apparently the U5 is 'due' today or something like that since the lay-off occurred 30 days ago. Makes me wonder whether the former employer is really trying to help this person, or instead is just trying to cover their rear-end.
Thanks
Sounds kinda sketchy. I think whether the person is being helped or hurt depends on his/her relationship with the bank/former employers. I obviously can't speak to what that's like so can't comment further.
If you were terminated then when you do get a job, then your references will say that you were terminated. If you voluntarily left, then the references will say why you had to voluntarily leave. Which one would you pick? Unemployment benefits aren't really beneficial for your long-term career goals.
OK, thanks for the thoughts.
I'm pretty sure the 'references', here being this person's former co-workers, are willing to speak positively over the phone to potential employers regarding this person. So if by 'references' you just mean this person's direct team, they will say good things about this person whether or not the U5 reads 'terminated' or 'voluntarily left.'
What about just in regards to the U5? How does that come into play here? I'm pretty sure this person values long-term career over short-term unemployment benefits.
At the same time, this person wants to make sure the former employer doesn't take advantage of his/her situation or make his/her situation worse or simply let their former employer cover their rear end at the expense of his/her situation.
Hope that makes sense. All thoughts appreciated.
You'll be fine. I was laid off a while ago, my U5 says "voluntarily left", and I received unemployment benefits during that time.
Layoffs = termination. Get a notice of layoff, ???, profit
Weird they called on the 'due date' but looks like you have your answer- probably won't hurt.
also get letter of rec from bosses/coworkers now on pdf
Thanks again for the thoughts. WalMartShopper, not sure I understand your comment on 'Layoffs = termination."
As for written 'Letter of Rec' from former co-workers/superiors, I believe this person asked for those, in pdf, and their co-workers/superiors were willing to and wanted to provide this, however the firm itself won't allow it.
If I may ask, WalMartShopper, do you know if your firm allows written Letter of References/Recommendations for past employees? Please do not feel obligated to name any firm or person names. Moreso think it would just be helpful to understand if not allowing any sort of written letters is typical of the industry or not
Sadly if it is firm policy, they won't risk their neck like that. I would still try to get through HR and obtain one. If not, best options are to get others who were also laid off (senior, subordinate, or same status).
A layoff = termination. Ask for a notice of layoff and let them know that the firm's policy is to not allow current employees to write letters of rec, however you have letters of rec from ___ (try to get previous employers/professors also to build a lineage).
A layoff that wasn't due to fault of your own is better than voluntary termination. I wouldn't trust them on the unemployment benefits being affected by U4, any attorney will tell you that you are risking your benefits and even committing fraud by doing that.
I have letters of rec from my past employers, never heard of this but looking around it seems like it is more common than I realize.
Also check your state's laws on layoffs/severance/benefits. They may be trying to avoid notifying the state of the layoffs to avoid taxes/etc.
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