Unemployment Benefits When Laid Off?

I'm a full time independent contractor. My client/employer wants to slash my pay to an unreasonable level and I'm choosing not to accept it, and move on.

Does this constitute quitting or being laid off? Will I be eligible for unemployment pay? Thank you.

 

That would be called quitting and im not sure how your employment insurance works in your country.

 

What if the employer's intent is to get the contractor to quit? Say he offers $1 instead of $4000 for the same job to avoid a lay off? There must be some recource for the contractor.

 

Don't you have more than one client/employer?

 

Thats why unions were created and contracts.

 

I only have one client and no written agreement or contract.

 

If there is a good reason for quitting which it sounds in your case there is you should still be entitled to unemployment benefits you will just have to fully explain the circumstances to them when you claim.

 

The laws are different in each state.

As I understand it, you work for yourself as an independent contractor. It sounds to me like you get paid for a job, from that you pay for materials, you pay for other labor, and you pay yourself a salary. (That is what I understand you to mean when you say you are an independant contractor.)

The self-employed do not get unemployment. So no, you would not be entitled to any unemployment insurance. Losing a customer is not the same as getting fired. Although they may "fire" you from a job, they are not your employer, merely a customer.

So a lawyer who loses a client is not "fired" for purposes of unemployment. A doctor whose patient decides he wants another doctor is not entitled to unemployment.

Unless your salary is being paid directly by another (your employer), who fires you, I do not think you are entitled.

Who pays your social security payments to the government? If it is you, again, that is a good sign you are your own employer.

 

I agree with browntwn, as an Independent Contractor you are not the employee of the one who engaged your services and thus no matter how you look at it, you cannot have been seen as being laid off or resigned from the post. You were never part of the company. The only business you are only part of is that of your own contracting business. Since you are the boss of your independent business, you cannot quite quit from it.

Since there is no contract, nothing is binding between you and your customer.

If you lose your clients, it cannot be deemed that you are no longer employed. I supposed you could try look for another client or renegotiate with the current one for a contract with both of you could agree upon with compromises.

Of course, if your contracted fees went from $4000 to $1 a month then there is really not much to say but if it is not that drastic like maybe $4000 to $3000, you might want to make some adjustment as $3000 is better than $0. Then at the meantime, look at the prospect of bringing another client on board.

 

If you contract your services out at a certain fee and you lose that contract for whatever reason (someonedoesn't want to pay your contracted rate), technically you are unemployed.

 

Well said! I left all that out as a given for a 'contractor'. Clients come and go on a steady basis. Move on to your next client, and the next, so on and so on.