Can You Get Unemployment If You Quit Your Job to Avoid Getting Fired?

Imagine you've been warned that your days at work are numbered. Do you ride it out and wait to be fired, or do you take control and resign first?

Some employees decide to quit before their employer makes it official, hoping to protect their reputation or future job prospects. But this raises an important question: will you still qualify for unemployment benefits if you quit instead of being fired?

The answer depends on the rules in your state.

General Rules for Unemployment Eligibility

To qualify for unemployment benefits, you usually must meet two basic conditions:

• You are unemployed through no fault of your own.
• You are able, available, and actively seeking to work.

The key phrase here is "through no fault of your own." If you quit your job, the unemployment agency will want to know why. Voluntary resignations are generally not eligible for benefits unless you had "good cause" for leaving.

Quitting vs. Being Fired

From an unemployment perspective, there is a big difference between quitting and being fired. If your employer fires you, you may still be eligible for unemployment unless you were fired for misconduct.

Misconduct usually means serious wrongdoing such as theft, violence, repeated insubordination, or coming to work under the influence of drugs or alcohol.

If you quit, the burden shifts to you to show that you had good cause. Good cause means a compelling reason that would force a reasonable person to leave the job.

Examples include unsafe working conditions, significant pay cuts, discrimination, harassment, or needing to care for a seriously ill family member. Simply quitting because you think you're about to be fired usually doesn't count as good cause.

When Quitting to Avoid Being Fired Might Still Qualify

There are a few situations where quitting before being fired could still lead to unemployment benefits:

• Constructive discharge. If your employer made your working conditions so intolerable that any reasonable person would quit, the unemployment agency may treat your resignation as a termination. For example, imagine your manager constantly yells at you in front of coworkers, assigns you impossible workloads, and ignores repeated complaints about harassment. If you finally resign because the environment is unbearable, the state may treat that resignation as if you were fired.
• Resign or be fired. Some employers give workers the choice to resign or be fired. If you take the resignation option, the unemployment office will often look at the facts to determine whether you really left voluntarily. In many states, being forced to resign is treated as an involuntary termination.
• Avoiding misconduct claims. In some cases, resigning before a firing can actually improve your chances of qualifying for unemployment benefits. If your employer was preparing to label your termination as misconduct, but the facts don't fully support that claim, quitting under pressure might prevent the employer from successfully arguing misconduct to the unemployment agency.

How State Unemployment Agencies Decide

Unemployment claims are decided by state agencies, and rules vary. But in general, agencies will review the reason for separation given by both you and your employer. They will also examine any evidence, such as warning letters, performance reviews, or written resignation letters. Finally, they will decide whether your resignation was truly voluntary or forced.

For example, if your employer documents that you quit after receiving several warnings for poor performance, the agency might decide that you voluntarily left without good cause. If your employer gave you an ultimatum to resign or be terminated, the agency may treat it as an involuntary termination, which makes you more likely to qualify.

What Should I Do If My Boss Asks Me to Quit Before I'm Fired?

If your boss suggests that you resign instead of being fired, it can put you in a tough spot. You'll have to weigh the potential damage to your professional reputation that a firing might bring against the possible loss of unemployment benefits that often comes with resigning.

One thing is certain, however. In many states, quitting will make it harder to qualify for unemployment benefits, while being fired might still allow you to collect benefits unless the employer can prove misconduct.

Practical Steps If You're in This Situation

If you are considering resigning to avoid being fired, think carefully about how it could affect your eligibility for unemployment benefits. Here are a few practical tips:

• Don't resign unless necessary. If you wait for your employer to fire you, you'll probably have a better chance of collecting unemployment.
• Document everything. Keep copies of warnings, performance reviews, and any communication from your employer about your job status.
• Clarify the separation. If your employer pressures you to resign, ask for documentation that your resignation was not completely voluntary.
• Be truthful in your claim. When you file for unemployment, explain the situation clearly. If you were given no choice but to resign, make that clear.

Next Steps

Because the rules vary by state and depend heavily on the facts, it's a good idea to check your state's unemployment agency website or speak with a local employment attorney before making a decision.