If My Employer Relocates am I Eligible for Unemployment?

July 11th, 2012 by Reed Allmand

If My Employer Relocates am I Eligible for Unemployment?

Unemployment benefits are available for qualifying workers who were at no fault in losing their job.  If you quit voluntarily you may not qualify under certain circumstances.  If your employer decides to relocate and the circumstances force you to leave, it is possible you may be eligible to apply for benefits.  When your employer relocates, it may leave you with a good cause in applying for benefits.  This may include the employer moving to another state or the move having a big impact on commute efforts.

During the unemployment application process you may be asked about your job situation to determine eligibility.  In the case of a relocating employer, you may be asked if you were offered another job or what personal reasons apply regarding the relocation.  It’s common for workers to be caught off guard when an employer announces they plan to relocate.

The distance of the relocation will be reviewed by the unemployment agency.  The move in many cases has to be at such a distance that it substantially affects your work commute.  You may also be eligible if you are moving with your spouse.  If the place of employment your spouse works at relocates and your spouse decides to keep their job and make the move, this may force you to leave your current job.

In some cases, an employee may be offered severance pay if the relocation is a result of the company downsizing.  If severance pay is received at the time the job loss occurs, this information may need to be reported upon applying.

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About Reed Allmand

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Allmand's vision is rooted in his own financially precarious childhood in Abilene "My father always had difficulty holding a job and supporting our family, so after my parents divorced when I was 12, my sister and I got jobs to help make ends meet," he recalls. "I remember what it felt like as a child to worry that our car would be repossessed or home foreclosed on."

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  • Jonathan Neurath

    I work for a government contractor in Kuwait that was based in Colorado when I started with them a few years ago but the company has separated into 3 divisions and the division I work for is now based in Virginia. Last time I worked for this company I collected unemployment from Colorado. When I complete my contract with them later this year I will be eligible for unemployment again. What I would like to know is, which state will I be eligible to collect from?

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