Like workers compensation insurance, state law is the primary source governing unemployment compensation. In most states, an eligible employee is entitled to unemployment compensation when he has lost his job through no fault of his own. That is, an employee is not entitled to unemployment where the employer can demonstrate that he has lost his job for good cause.
The main point human resource managers, supervisors and clerical staff should heed in handling unemployment compensation is to remember that documentation is the key to successfully managing most claims employers encounter. It’s all based on sound employment principles of keeping detailed notes on the who, what, when, where, why and how of employment reviews, employee warnings, meetings, employee paperwork, performance reviews, job descriptions, employment policies and most especially the details surrounding ALL employee separations from employment.