Total and Partial Unemployment TPU 460.37 - Fact Finding Guide

In Lieu of Notice Pay

For the payment to be considered wages, employees must have a right to advance notice in the event of discharge, or are entitled to payment in the event no notice is given.

  1. What is the basis for the payment?
  2. Are the payments made in accordance with the requirements of the WARN ACT? If yes, what period are the payments allocated to?
    • If allocated prior to December 30, 2001, the payments are wages for unemployment insurance purposes.
    • If allocated on or after December 30, 2001, the payments are not wages for unemployment insurance purposes.
  3. Is the payment made pursuant to a collective bargaining agreement? A written or clearly established policy?
  4. What is the agreement or policy?
  5. How many weeks does the payment relate to?
  6. Is the employer obligated to make the payment?
  7. Does the claimant have a right to the payment?
  8. Has the employer adhered to his practice and policy of making payment?
  9. Did the employer give advance notice of termination? If so, did the employee work through the notice period?
    • If the employee did receive notice and worked through the notice period and the employer still paid the in-lieu-of-notice pay or (WARN ACT pay allocated prior to December 30, 2001) the payment would not constitute in-lieu-of-notice pay. The payment may be severance pay or "wages."
    • Refer to TPU 460.35 for discussion of severance pay and to TPU 460.39 for discussion of "wages."