What to do when a former employee files for unemployment

Executive overview

When a former employee files for unemployment, HR's only job is to respond accurately to the government agency — not investigate motives or contact the employee. The key risk is contesting claims incorrectly, which can expose the organisation to compliance failures. Two tools reduce that risk: a standardised offboarding process and documented performance management.

Documentation built before termination determines your ability to contest any claim that follows.

What HR needs to know upfront

• Don't calculate state unemployment insurance (SUI) rates yourself — that's for your payroll company and tax accountant.
• Never contact the former employee about their claim; communicate only with the relevant government agency and, if needed, their former manager or your employment attorney.
• If the former employee contacts you, stay cautious and limit responses to what you are legally required to provide.
• Only the claimant's most recent employer is liable to respond to a valid unemployment claim.

How the filing process works

• The former employee files with the governing agency for their jurisdiction, certifies they are actively seeking work, and receives regular payments while continuing to certify.
• You receive a notice of unemployment insurance claim and must validate or contest it.
• If you contest, you must submit documentation proving ineligibility.

Grounds for contesting a claim

• Claimant is currently working full-time or part-time.
• Separation was due to voluntary resignation or termination for just cause (not a layoff).
• Claimant is not legally verified to work in the United States.
• Claimant is receiving a pension or severance pay.

Building a defensible offboarding process

• Standardise termination with an offboarding checklist covering system access removal, COBRA administration, and state-required separation notices.
• Use performance management documentation — one-to-one meeting notes, identified issues, required follow-up acknowledgements — to create a paper trail before any termination occurs.
• Require written acknowledgement from employees so all parties are aware of performance issues.
• Approach each claim with honest intent; your role is to supply accurate information, not to litigate.