Do companies have a financial incentive to deny unemployment?

  • Thread starter Thread starter neanah_e
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neanah_e

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I was recently fired by my company for a molehill made to look like a mountain reason and was told I would probably be denied unemployment but "we always encourage everyone to at least apply."

A woman who sat close to me was fired this week for a fabricated reason. Earlier this year the company laid a lot of people off, but this time around they seem to be looking for (and finding) reasons to fire people, instead. I know business is down and they are looking to cut costs; it was a big drive in the past year while I was there. Do they have a financial benefit for seeing that the next round of people they let go are not able to claim unemployment compensation? If it helps, this is a large corporation in Texas, so Texas laws apply.
 
Unemployment is a fund we all pay into as workers. We each have our own "unemployment fund" build depending on how many years we've worked. Nevertheless, my understanding is that the company itself also has to pay part of the former employee's unemployment claim.
 
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