Business & Finance Personal Finance

Can an Employee on Unpaid Leave Receive Unemployment?

    Family and Medical Leave

    • The Family and Medical Leave Act allows you to take unpaid leave to care for yourself or a close family member. You can use the leave when you or a loved one is ill or for a maternity or paternity leave to care for a newborn or a newly adopted child. Your employer must hold your job for you. You can take up to 12 weeks of unpaid leave a year, or 26 weeks if the leave is to care for a spouse, son, daughter or parent who is in military service. The Family and Medical Leave Act applies only to companies who have 50 or more employees. Since this leave is voluntary and you still have a job at the end of your leave, you're not eligible to collect unemployment benefits while you're on leave.

    Forced Days Off

    • In order to save money during a budget crises, some state and local governments, as well as some businesses, may institute a policy to require employees to take days off without pay. Usually these leaves are for short periods of a day or a few days at a time. Though these days off are not always voluntary, you're still considered employed while on leave, so you're not eligible for unemployment. If your employer offers a voluntary unpaid leave as a cost-cutting measure and you agree to take the leave, you're not eligible for unemployment benefits because you volunteered for the time off without pay.

    Furlough

    • If you're placed on furlough from your job due to a lack of available work, you may file for unemployment. Though you're subject to being called back to work at the end of a furlough, this isn't guaranteed, so unemployment offices view furloughs the same as layoffs. You're eligible to look for other work during a furlough, so you meet the requirements to collect unemployment benefits.

    Requirements for Benefits

    • In order to receive unemployment benefits you must actively look for work, and be ready and willing to take a suitable job if one is offered to you. Each week when you file your unemployment claim you'll be asked about jobs you applied for. If an employer offers you a job in your field at reasonable pay, you must take it. If you're on unpaid leave to care for a family member, or because you yourself are ill, you don't meet the requirement of being willing and able to work. If you retain your job, and are on leave for only a day or two, you don't meet the requirement of being able to work at a new job.

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