Can I qualify for Unemplloyment if I decline a demotion.

[AVH]

What is the name of your state (only U.S. law)? Michigan

I was just informed this morning by my manager that he is planning on demoting me. He wants me to continue in my current position until January 1so that I can train my replacement. He is demoting me from Sales Manager to a Sales Rep position, which will be about a 15-20% drop in pay.

The fact that I have never received any kind of performance warnings has me feeling that the demotion is very unfair, but being an 'At Will' employee, I don't believe it's unlawful.

I am planning on giving him my decision soon, but would like to know if there is any chance for unemployment benefits if I decline a demotion.

 

[ecmst12]

Low chance. Plus even with the pay cut, you'll surely be making more then unemployment would pay you.

 

[commentator]

Right, in Michigan today, even a demoted job may be better than no job at all, even with unemployment benefits. Do the math. Since the job is in the same location, there's no additional cost of commuting. We assume there's to be no change in your benefit structure with the company, which you would lose if you quit. And the chances of replacing your job with one that pays even what the lower paying job pays may not be good right now.

But if you do decide you want to quit and try for unemployment, the one thing you must do is quit before you have accepted the pay cut and demotion. If you take the job, try it out for a few days and then find you can't take it, you will have very very little chance of being approved for benefits.

And even if you refuse the job and quit before you are demoted, your chances for unemployment are probably not too good. This demotion would probably be seen as an effort by your employer to keep you working instead of having to let you go. It might be somewhat humiliating to have to train your replacement or work in a lesser position, but in the meantime, you can always be looking for that new next job that would be back up where you want to be.

 

[AVH]

Thanks for the input.

The issue for me is not so much about the pay cut, it's about the position I am being put in.

My boss just talked to me again, and asked me to pick up my replacement from his home, and bring him to work with me, and then bring him around to all of my customers to explain to them that he is my replacement. The demotion involves me being sent back (to another location) to my old territory, and to my old customers (who were all aware that the reason I left 2 years ago was due to a promotion).

I absolutely feel my employer is trying to get me to quit, so they will not need to pay unemployment.

 

[Zigner]

Thanks for the input.

The issue for me is not so much about the pay cut, it's about the position I am being put in.

My boss just talked to me again, and asked me to pick up my replacement from his home, and bring him to work with me, and then bring him around to all of my customers to explain to them that he is my replacement. The demotion involves me being sent back (to another location) to my old territory, and to my old customers (who were all aware that the reason I left 2 years ago was due to a promotion).

I absolutely feel my employer is trying to get me to quit, so they will not need to pay unemployment.

This sounds like a transfer, not a demotion

 

[pattytx]

This sounds like a transfer, not a demotion

Could be. If the OP declines this transfer he likely wouldn't be eligible for UI benefits either.

 

[AVH]

It, in fact, is a demotion. Title change (from General Manager to Sales Rep), wages (about 20% drop), and my responsibilities will change. My boss wants me to sign the paperwork before the weekend, but I am seriously considering quitting.

 

[commentator]

Remember, this will make it quite tough to draw unemployment. Especially if the wage rate change is not too huge a difference, and you are not being taken off their benefits program or asked to commute a longer distance. It sounds more like a loss of status issue, designed to humiliate you. It's hard to get approved for quitting because you've been insulted.

Even if they are doing this to try to get rid of you, I'd probably not quit, just work till I could find something else or they fired me, so I would be able draw more easily. Their goal, of course is to get you to quit and not have to pay you unemployment. But anyhow, good luck, whatever you decide, you've always got the right to file a claim and see what the decision is.

 

[pattytx]

Call it a demotion, call it a transfer, call it a toaster (credit: cbg), call it Bob. Doesn't make any difference. If you are offered available work which you are able to do and refuse, your chances for UI go WAY down.