Understanding the Impact of Poor Performance on Unemployment Benefits

When a company releases an employee for poor performance, it’s important to understand how this might affect their eligibility for unemployment benefits. In the United States, poor performance alone typically does not constitute a 'termination for cause,' which can preclude an individual from receiving unemployment benefits.

Poor Performance Does Not Necessarily Equal Misconduct

Unemployment benefits are generally granted to individuals who did not commit misconduct, did not violate company policies, and made a genuine effort to fulfill their job responsibilities. Poor performance is often not considered misconduct. For instance, an employee might have tried their best repeatedly, but still struggle with their job due to various factors such as lack of skill, experience, or training.

The Concept of Termination for Cause

A 'termination for cause' refers to a situation where an employee has violated a company policy or engaged in misconduct that is actionable. This could include theft, fraud, drug use, or neglecting to perform essential job duties. If the employee is terminated for such reasons, they are typically not eligible for unemployment benefits.

Practical Considerations and Legal Implications

While poor performance alone typically does not result in a denial of unemployment benefits, if an employee is fired for specific reasons, such as consistently failing to meet job requirements, it is still a termination and may impact their benefits. However, if the employer fires an employee for lack of skill or performance, rather than misconduct, the termination is not considered 'for cause.'

For instance, an employee who is fired for repeatedly being sh!t at their job or having issues with co-workers, but not for violating any policies or engaging in misconduct, can still apply for and receive unemployment benefits. The employer might not want to work with you anymore, but they cannot preemptively deny benefits solely based on poor performance.

What Can Be Done if a Termination Is Unjustified

If you believe a termination is unjustified, the most important step is to maintain documentation. Keep copies of your work on your personal computer, as it can be invaluable during the appeal process. Consider contacting a wrongful employment termination attorney for guidance on how to proceed.

Examples and Legal Reviews

There are instances where a company’s lack of training can be a mitigating factor. For example, a cashier who was trained on the cash register but not on cash handling might be more prone to making errors. If fired for poor performance, the employee can argue that the company’s lack of proper training should be considered a reasonable expectation.

Consider a scenario where a young woman was fired for making mistakes in giving change. She was trained only on register buttons, not on cash handling. Her drawer went short due to minor mistakes, and she was fired. However, upon appeal, the Department of Workers’ Development (DWD) reviewed the termination and decided that the company's failure to train her on cash handling duties was a contributing factor. The woman was awarded unemployment benefits, and the company was asked to ensure proper training in the future.

Even if you believe a termination is unjustified, follow the proper process. File claims for unemployment benefits and continue to appeal if necessary. Document everything and keep copies of all communications and appeals.