Leaving a job with benefits

Resigning, getting laid-off, or getting fired from a job can be extremely stressful. The benefits
individuals and their families once relied upon may suddenly be gone and the loss of income
alongside can drastically change a person or families situation. While some people will have the
financial luxury of taking their time transitioning to a new job, the majority of people know that
the loss of income and benefits will not be able to be continued without finding new work
quickly.

Before leaving the place of employment a person should first know what benefits they are
eligible for. By law, an employer must give the employee some benefits, though depending on
the place of employment and the departing situation there will be different entitlement. To be
safe, best practice requires inquiries about severance pay, accrued vacation, overtime and sick
pay, pension benefits and eligibility for unemployment insurance. In addition, inquiries on
continuance of health and life insurance benefits should be asked.

Individuals are encouraged to file for unemployment as soon as possible to avoid a delay on
receiving checks. Employers with over 20 employees are required by law to offer health
insurance coverage through COBRA (Consolidated Omnibus Budget Reconciliation Act of
1985) to terminated employees for 18 months, though the former employee will have to pay for
it. Some individuals will have health insurance coverage for a limited time as part of the
severance package.

The Department of Labor has specific information on the details of pensions plans. Employees
enrolled in a 401 (k), profit sharing or any other type of defined contribution plan may be
allowed to have a lump sum distribution of the retirement money when departing from the
company.

There are a lot of different factors that will determine what eligibility to benefits the individual
has. By understanding the resources available, transitioning job positions can be much easier.