Employment or Job Termination Package - Rhode Island 2025

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A severance or exit package is a bundle of benefits offered to employees who are laid off, terminated, or, under specific circumstances, voluntarily leave their jobs. They most often include financial compensation, continuation of certain benefits, and placement services to find a new job.
Can I collect UI benefits if I receive severance pay? You will have your payment delayed by the number of weeks of severance pay received from your employer. Any severance pay received will be allocated on a weekly basis from your last day of work for a period not to exceed 26 weeks.
If a claimant receives a severance package from their former employer, TWC may determine that the claimant is not truly unemployed through no fault of their own because they received compensation from their former employer. This may result in TWC denying the claim for UI benefits.
Rhode Island Termination Laws Rhode Island is an employment-at-will state, which means that without a written employee contract, employees can be terminated for any reason at any time, provided that the reason is not discriminatory and that the employer is not retaliating against the employee for a rightful action.
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