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How an employee on leave is impacted by termination
How an employee on leave is impacted by termination
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Written by Cocoon Support
Updated over a week ago

We understand that there can be organizational changes that impact employees on leave. There are a number of different things that may happen if an employee on leave is terminated based on their claims, pay, and leave status. Please alert Cocoon any time an employee with a leave plan in Cocoon is terminated by emailing [email protected] with the employee's name and termination effective date as soon as you can.

There are a few different termination scenarios within Cocoon:

Before leave: If an employee terminates before their leave starts, Cocoon will not file any claims. Cocoon will assist with transitioning existing documentation and assist with any helpful resources that may help the user self-file for their benefits.

During leave: When an employee on leave is terminated, Cocoon will compile all claims (whether in progress, awaiting decision, or completed) and leave information to pass off to the employee. After their termination date, the employee will be responsible for finishing up or tracking their claims.

After leave: If an employee terminates after they have completed their leave, Cocoon’s support team will transition any existing claims documents related to leave to the employee upon their termination (state account information, claims, pay data, compliance notices).

Once we are made aware of an employee termination, Cocoon will update the employee's status to ‘terminated’. We do not completely erase leave dates to ensure integrity of reporting. You will see an updated status in your admin dashboard:

Why do I need to tell Cocoon about terminated employees?

We're working on updating how we parse the census + building out some alerting based on termination status updates. In the interim, if your team can send over a quick email to [email protected] anytime someone is termed, we can kick off the appropriate processes internally.

What happens to my employees’ claims?

Upon an employee's termination, Support will provide terminated employees with a comprehensive file including compliance notices, pay information, and claims statuses. In this communication, we will also notify the employee that state benefits for disability and paid family leave programs and state unemployment benefits cannot be collected concurrently and that the employee will have to decide what benefits are best for them to file.

How does pay work for terminated employees?

Once an employee termination is communicated to us, Cocoon will determine and communicate to you if there are any outstanding benefits to recoup from the employee, or benefits that may still be owed to the employee. We’ll communicate these amounts, and it’s up to you to work with your employee to recoup the outstanding balance.


Any questions? Please reach out to the Cocoon Support team at: [email protected]

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