Phila.
Regional Port Authority v. UCBR – July 20, 2018 – en banc – reported decision
Held: Claimant was eligible for benefits under Section
402(b) of the Unemployment Compensation Law (Law) because she opted to
participate in a voluntary separation incentive program offered by Employer.
The
Voluntary Layoff Option (VLO) Proviso of Section 402(b) of the Law states as
follows: An employe shall be ineligible for compensation for any week – *** (b)
In which his unemployment is due to voluntarily leaving work without cause of a
necessitous and compelling nature…Provided further, That no otherwise eligible
claimant shall be denied benefits for any week in which his unemployment is due
to exercising the option of accepting a layoff, from an available position
pursuant to a labor-management contract agreement, or pursuant to an
established employer plan, program or policy[.] 43 P.S. §802(b).
The
court relied on the Supreme Court’s ruling in Diehl v. UCBR, 57 A.3d 1209 (Pa.
2012). Recognizing that the Law does
not define “layoff,” the Supreme Court concluded that the term should be
construed consistent with “common parlance,” which encompasses “both temporary
and permanent separations initiated by the employer.” Diehl, 57 A.3d at 1218 .
It then considered whether an early retirement plan offered in the context of a
workforce reduction is the equivalent of “an option of accepting a layoff.” The
Supreme Court concluded that they were the same, stating “Given that we must
interpret eligibility sections broadly in favor of the employee, we find no
language that prevents the interpretation of the term layoff to include this
employer-initiated, early retirement packages [sic] offered pursuant to a
workforce reduction. Diehl, 57 A.3d at 1222.
“The
plain language of the VLO Proviso does not support Employer’s contention that a
“plan” must be one that targets specific employees, or positions, 12 and must
have been agreed to by the separating employee in advance of its need. Neither Diehl nor its progeny support Employer’s
proffered requirements. Claimant accepted a layoff from an available position
pursuant to Employer’s Voluntary Separation Incentive Program. As the Board
correctly determined, Claimant is eligible for benefits under the VLO Proviso.”
==================
