While the unemployment compensation statute precludes
contractual waivers of unemployment benefits, the courts have recognized a
common law waiver when a union negotiates termination benefits:
When an employee has a termination package pursuant to a
collective-bargaining agreement between [his] union and the employer, the employee
is deemed to have accepted the benefits of the package, and waived [his] right
to benefits, in return for [his] agreement to be terminated at a certain time.
. . . “The termination when a collective-bargaining
agreement exists is deemed to have been for just cause, rendering the employee
statutorily ineligible for unemployment compensation.
However, this
exception did not apply in this case because the employee was not terminated in
accordance with a collectively-bargaining retirement package. Instead, he was placed indefinitely on
unpaid sick leave. “There
is no indication as to how long Mr. Gardner could have remained on this leave
status and no indication in the record that this leave status was required by
the terms of any agreement between his union and the City.” Accordingly, the Court refused “ to extend
common law waiver to the circumstances present in this case, where there is no
termination package at issue, where the leave at issue could last indefinitely,
and where the leave at issue was not contemplated as part of any collectively bargained
agreement in the record.”
NOTICE: This summary is designed merely to inform and alert you
of recent legal developments. It does not constitute legal advice and does not
apply to any particular situation because different facts could lead to
different results. Information here can be changed or amended without
notice. Readers should not act upon this information without legal advice. If
you have any questions about anything you have read, you should consult with or
retain an employment attorney.