The payments are set to help people survive without a earned income. There are sometimes time limits set on how long the individual can receive payments. This is a benefit established by the Social Security Act of 1935. Unemployment compensation provides income to an employee who is terminated. This only applies to employees laid off due to poor economy or other unfortunate business situations.
Employers have the right to refuse unemployment to individuals who are terminated for other reasons.
Although unemployment compensation was part of a federal act, each state has its own unemployment program. Therefore, the amount of compensation varies from state to state. The amount is established on a state to state basis. Depending on the injury the employee may be better in trying to receive some sort of disability income. There are many differences in benefit programs.