Across different industries and management levels, several stubborn myths exist. Passed from manager to manager, these ideas are, in some cases, just plain wrong, and in other cases can actually expose your company to liability. This newsletter will occasionally pull out one of these myths for you, explain it, and hopefully retire it.
The Unemployment Myth
“If a new employee is “borderline”, we have to get rid of him before his first 90 days are up. That way we won’t have to pay him any unemployment compensation.”
It’s easy to see how this seems correct: When your former employee applies for unemployment compensation in Pennsylvania, the Service Center will skip at least the three most recent months when reviewing his wages and hours worked. If he only worked for you for three months, the wages and hours worked in your employ will be skipped.
For now.
What many employers forget, however, is that time moves on, and it’s quite possible that down the road (say a year from now), that same former employee will have become separated from another employer, re-apply and be eligible for unemployment compensation. When the Service Center calculates hours and wages, your company will then be within the timeframe for eligible contributing employers, and you may be required to contribute a portion of his unemployment compensation.
Some points to keep in mind:
- There is no official “Probation Period” in an at-will employment relationship. 90 days is a common timeframe set up to determine if the employment relationship is working out. That’s absolutely fine as long as you realize that 90 days isn’t a magic number. It could be 60 days or 6 months. Many companies have no provision for a probationary period at all. Above all else - it’s important to remember that 90 days is in NO WAY tied to eligibility for unemployment compensation.
- It’s important to document performance consistently, however it’s especially important in the first few months of employment. Documentation will help the new employee understand what is expected of him, will help in coaching and in upcoming evaluations, and if the employee IS borderline and you decide to terminate, consistent documentation is imperative to head off claims – whether an unfair practices claim or an unemployment claim down the road.
Confusing? That’s why we’re here. Our staff can help your company through a current or potential unemployment claim. We’re also more than happy to simply answer your questions about unemployment. If you have several managers, we offer customized training sessions that will allow us to get into as much detail as your company wants or needs.
Contact our office for more information.
