My question involves unemployment benefits for the state of: TN
Bolded questions below.
My job responsibilities depend on the company bringing in enough work for me to do. Since we've been slow, I've had little to do.
The boss told me that he was laying me off because they couldn't afford to pay my W2 salary during downtime.
He said, however, that he would contract me 1099 as work picked up, effectively just paying me for productive time.
His words were, "So, you're fired, but not exactly, haha"
I asked if there was any other way and he said, "Either you're let go and you contract with us, or you're just let go."
After warming up to the idea of 1099 work, I'm pretty excited about the possibilites. We negotiated a pretty good deal for both of us and I'm just waiting to sign some 1099 paperwork.
Today however, he asks for a letter of resignation that should include:
Amicable recognition by both parties
Intent to 1099 contract in the future
Date of resignation
I'm wondering if he is doing this to avoid paying any unemployment claims?
Say, worse case scenario, we don't have contract work for 3 months, and during that 3 months I'm not able to find other employment - either 1099 or W2 - I'd like to have those benefits to get me by.
If I want to file for unemployment, then I won't get it because of this resignation letter, correct?
Or is there a way to mutually agree to resign like this and still get unemployment?
I feel like signing a resignation letter is going to burn the last piece of protection I have if things don't work out.
If given the option, is it better to just let him lay me off, rather than resign, so that I still have access to this?
(One thing that I want to point out is other threads say it's a case by case thing and in a forced-resignation situation you could still get unemployment benefits, but other threads say you won't unless you're laid off. Definitely need some clarification here.)
Also, not sure if they somehow didn't pay their unemployment tax, what happens to them when/if I file. Maybe that's a problem so they don't want to pay out of pocket?
Let me be clear by saying that if unemployment is going to come out of their pocket, then I don't want to rock the boat because I'd like to maintain this contract, but if they paid their unemployment tax, then there should be no money out of pocket right?