A severance of employment is based on “facts and circumstances.” Only the employer can determine whether or not employees have a severance of employment, however there is limited guidance that may help you determine if there is a severance of employment:
• The severance was in good faith (bona fide).
• The individual is not treated as an employee for other purposes (such as participation in employee benefit programs).
• There is a reasonable expectation the person will no longer be performing any more duties with the employer.