Employment or Job Termination Package - Arizona 2025

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At-will employment: Arizona follows the at-will employment doctrine, which means that either the employer or the employee may terminate the employment relationship at any time, with or without cause. However, certain exceptions apply, such as terminations based on discriminatory or retaliatory motives.
A claimant is not eligible to receive benefits for any week in which severance pay, vacation pay, holiday pay, or sick pay that exceeds the weekly benefit is allocated. If payments are less than the weekly benefit amount, the amount of the payment, less $160, will be deducted from the weekly benefit amount.
Final paychecks in Arizona Employers must pay terminated or laid off employees their final paycheck within 7 days or by the next payday, whichever comes first. Employees who resign or are suspended must be paid their final paycheck by the next scheduled payday.
You could be denied unemployment in California for several reasons, including being fired for misconduct, voluntarily quitting without good cause, or failing to meet the EDDs eligibility criteria.
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.

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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.

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