Categories
04. Total or Partial Unemployment

Tenneco Inc v MESC – 4.14

Tenneco Inc v MESC
Digest no. 4.14

Section 48

Cite as: Tenneco Inc v MESC, unpublished opinion of the Jackson Circuit Court, issued December 30, 1983 (Docket No. 82-29572 AE).

Appeal pending: No
Claimant: John J. Brieger
Employer: Tenneco, Inc. – Walker Mfg.
Docket no.: B80 23129 RO1 76344
Date of decision: December 30, 1983

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CIRCUIT COURT HOLDING: Where an employer allocates vacation pay to periods of lay-off, but fails to comply with the notice requirements of Commission Administrative Rule 302, the payment is not remuneration under Section 48.

FACTS: The claimant made a request for vacation pay. On June 6, 1980, he received a check representing his vacation pay with his vacation beginning the following week. The collective bargaining agreement provided that the company could schedule a shutdown of plant operations for a period in July or August, on the condition that 90 days prior notice be given. Written notice of a shutdown scheduled for August 28, was posted at plant locations on May 9, and July 2, 1980.

DECISION: The vacation payment is not remuneration under Section 48.

RATIONALE: “[T]he employment contract provides for plant closures, but makes no provision for allocation of vacation pay to those periods. The effectiveness of the allocation must hinge upon the company’s compliance with the provisions of Rule 302.”

Neither of the posted notices referred to the allocation of vacation pay or that employees might be ineligible for unemployment benefits upon receipt of the vacation pay.

“Since the notices in this case do not meet with the requirements of Rule 302, the decision of the MESC allowing benefits … is affirmed.”

Digest Author: Board of Review (original digest here)
Digest Updated:
6/91

Categories
04. Total or Partial Unemployment

Abbeg v Russell, Burdsall & Ward, Inc – 4.15

Abbeg v Russell, Burdsall & Ward, Inc
Digest no. 4.15

Section 48

Cite as: Abbeg v Russell, Burdsall & Ward, Inc, unpublished opinion of the Branch Circuit Court, issued October 5, 1982 (Docket No. 81-12-581 AE).

Appeal pending: No
Claimant: Clarence Abbeg, et al.
Employer: Russell, Burdsall & Ward, Inc.
Docket no.: B80 18840 75094, et al.
Date of decision: October 5, 1982

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CIRCUIT COURT HOLDING: Where “the employer complies substantially with the requirements contained in Commission Administrative Rule 302, the purpose of the notice is accomplished.”

FACTS: The claimants were laid off from August 3 through August 16. The employer had scheduled a plant shut down for this period. “The claimants and their union president were given advance notice by the employer of the intended shutdown and on April 22, 1980, the employer posted notice on the plant’s bulletin board which was followed by the employer’s letter to the union president. … [N]either of the written notices contained any statement regarding any possible effect of the shutdown or payment thereof on the (claimant’s) eligibility for unemployment benefits.”

DECISION: The notice was sufficient to comply with Commission Administrative Rule 302.

RATIONALE: “[T]he employer did comply substantially with the requirements contained in Rule 302 so that the purpose of the notice was accomplished. Written notices failed to mention any possible effect that the August, 1980 shutdown would have on the claimant’s eligibility for unemployment compensation, but in other respects the notice was clear. The dates of shutdown were set forth as was the fact that this was considered a ‘vacation’ shutdown. The letter which the employer sent to the union president further clarified that employees would be required to take vacation during the shutdown to the extent that their vacation had been earned. Further, the employees must have understood the shutdown to be a vacation and circulated a petition of protest which showed they had such understanding.” The payments in question are remuneration under Section 48 of the Act.

Digest Author: Board of Review (original digest here)
Digest Updated:
6/91