Reduction In Force; Unemployment Strategies

No. 2

In this issue of the UCP Update, we continue our series of articles which examine opportunities to reduce your unemployment liability when workforce reduction is necessary. This Reduction in Force Unemployment Strategies insert addresses the issues of refusing suitable work and making a job offer. We have included a sample offer letter that you may use if you desire.

Please contact me if you have questions or wish to discuss these issues in more detail.

Neil A. MacVicar, senior director

Unemployment Compensation Program

(517) 886-8331 nmacvica@lans.mha.org

REFUSING SUITABLE WORK / MAKING A JOB OFFER

In order for a former employee (claimant) to collect unemployment benefits, he or she must be available for and seeking full-time work. If a person is offered work and fails to accept an offer of work without good cause, he will be partially disqualified from receiving additional unemployment benefits. The important factors in determining disqualification are that an "offer" is made and it must be "suitable."

While there are no hard and fast rules to determine suitability, the Michigan Unemployment Agency (MUA) looks at several factors to determine suitability. They include the following:

1. The degree of risk involved to an individual's health, safety, and morals;
2. The individual's physical fitness and prior training;
3. The individual's work experience and prior earnings;
4. The individual's length of unemployment and prospects of securing local work in the claimant's customary occupation;
5. The distance of the available work from the claimant's residence.

Each case is reviewed on an individual basis by the MUA. The burden is on the employer to inform the MUA that an offer was made and refused. If the employer is a member of the UCP, it is only necessary to report the refusal to a UCP representative. In order for the UCP to prevail, it is necessary to prove that an offer was made, the offer was suitable, and the offer was refused. The UCP recommends the following procedures be used in making an offer of work:

1. Put the offer of employment in writing (include the rate of pay, shift, etc.);
2. Attach a job description to the written offer;
3. Specifically state the date and time the offer will expire. Also, indicate that a failure to respond by the stated deadline will result in an automatic withdrawal of the offer. Give the person a reasonable time to consider the position offered and a reasonable time to respond.
4. Allow the claimant an opportunity to ask questions and inquire about the specifics of the offered employment;
5. Give the claimant the name and phone number of the person they should contact to accept or decline the offer. Also, give the name and phone number of an alternate contact person in case the primary contact person is not available when the claimant responds.
6. Personally present the written offer of employment to the claimant or send the written offer by mail (with return receipt requested);
7. Be prepared to provide basic training or orientation to the claimant upon acceptance of the offered employment.

A sample of an appropriate job offer letter is provided below.

If the claimant accepts the offer, you should contact the UCP to verify that the claimant does not attempt to continue to receive unemployment benefits. If the offer is for a position which provides less hours, the claimant's benefits may be reduced based on wages earned. Contact your representative at the UCP for assistance in managing under-employment claims.

SAMPLE JOB OFFER LETTER

January 5, 1998

Sent Via Certified Mail

Return Receipt Requested

Dear Ms. Smith:

For the record, I wish to place in writing the offer of employment being made to you on this date. The details concerning the position are as follows:

1. Position: Nurse Aide
2. Status: Full-time
3. Rate of Pay: $5.25 per hour
4. Shift: 7:00 a.m. - 3:30 p.m.
5. Starting Date: Monday, January 26, 1998
6. You will be subject to 90-day introductory period.
   

Attached you will find a copy of the complete job description. If you have additional questions regarding the position, please feel free to contact me directly.

Please contact me at (313) 888-9999 by Monday January 12, 1998, 5:00 p.m. to accept or decline this offer. In my absence, you may contact Ms. Suzanne Brown at (313) 888-9998. Failure to respond by January 12, 1998, will result in the withdrawal of the offer. I look forward to hearing from you.

Sincerely,

Sam Davis

Human Resource Specialist

Enclosure ****

I accept the position of Nurse Aide with XYZ Health System.

____________________________________________ ________________________

Carly J. Smith Date