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Collecting unemployment in California from a mutual termination?

Laguna Niguel, CA |

I work for a large company and after years of working there things are just not working out. I recently had a meeting with HR and they said that rather than firing we could come to a mutual termination and that in Ca I can still collect UI from that based upon what they will put in their paperwork. Does this sound right? Or is UI not a possibility if I go that route? Thanks for the help

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Attorney answers 3


Generally, you can collect unemployment so long as your employer does not contest any claim for unemployment you file. I see no problem with the situation you have described. With that in mind, read everything your employer gives you at the time of severance carefully. If you do not understand any of it, you should consult with an attorney about it before signing anything. Some attorneys will give a free consultation. Your employer should understand if you tell them you want to have an attorney review the documents before you sign. You should also ask for a letter of reference. In the meantime, always handle yourself professionally and do not make any disparaging remarks about the company.

DISCLAIMER: No attorney-client relationship is intended to be created by this message. The statements contained herein are the attorney's opinions based on the limited information provided. The attorney will accept no professional responsibility for the contents of this message.


The issue, from the EDD's perspective, is who initiated the separation. In other words, had the employer not given you the option to leave by mutual agreement, would they have fired you? Employees who resign rather than be fired are eligible because the separation was truly not voluntary.

If presented in this light, you should be eligible for benefits. For more on this subject, go to the Benefits Determination Guide for the EDD at .


Based on your short note, I have one thing to say: "Something smells funny!"

You need to talk to an attorney that specializes in wrongful termination and harassment.

I do not like the term "mutual termination."

Also, you need to find out if your company will be telling potential employers who contact them that you were "terminated." And, what happens if potential employers call and ask of you are eligible for re-hire.

I don't like this at all.

Talk to an attorney before agreeing to anything. And DON'T SIGN ANYTHING until you do.

The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author. It should not be relied upon as legal advice. The response given is based upon the limited facts provided by the person asking the question. To the extent additional or different facts exist, the response might possibly change. Attorney is licensed to practice law only in the State of California. Responses are based solely on California law unless stated otherwise.

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