They want you to quit so they don’t have to pay unemployment. If they have really good cause to fire you, they’d probably do it. Sounds like you’re getting screwed.
They can’t withhold pay that you’ve earned. People that get fired don’t normally get severance.
Wrong. First off, employers don't "pay" unemployment to former employees. UE insurance is paid to the state, which we submit as a percentage of our total payroll for the quarter. For my business, in AR, I pay 4% of my total payroll in UE premiums to the state. The percentages are different for every employer, but that is a long and complicated discussion if I were to break it down. A five month severance off is generous. It is as long as any possible unemployment benefit that could be obtained from the state. UE will only payout a percentage of an individual's salary (60 to 80), the severance package is 100% of the salary. It's a better offer. Plus, they are agreeing to pay the 207 hours of vacation time, which NO employer needs to do when they let an employee go - contrary to what most people believe. Their offer is generous.