Employment or Job Termination Package - Connecticut 2025

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In all cases, a claimants receipt of severance pay will now result in disqualification from receiving UI benefits for the period of time covered by the payment. A claimants receipt of accrued vacation pay at the time of dismissal will not disqualify the claimant from receiving UI benefits, if otherwise eligible.
You may not receive benefits if you: Left your job for personal reasons unrelated to work. Were fired for misconduct.
Heres the big takeaway: You cannot receive unemployment benefits for weeks when you are also receiving severance pay.
In Connecticut, at-will employees are not entitled to severance pay by default, so any severance payment, continued health benefits, or other financial benefits provided to the employee are usually considered adequate consideration.
Severance pay is considered an earning, even if you havent received it yet. The TWC wants to know all your income when you request unemployment benefits. They need to know your total hours worked (if any), earnings before deductions from all work, self-employment or 1099 pay, vacation pay, and commissions.
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Payment on Termination The employer shall pay an employee who voluntarily terminates or is laid off on the next regular payday. If an employee is discharged all wages are due the next business day. Connecticut General Statute 31-71.
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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