A friend of mine was laid off a week ago. At the time she was let go, she was offered a severance equal to six weeks pay. If she accepted it, she had to sign a form saying she wouldn't file for unemployment. She wasn't allowed to think about it. She had to decide before she left the HR director's office. In the end, she took the severance and signed the form. It got me thinking though, which provides the better benefit? Obviously the severance amount is known up front. The unemployment benefit would depend on how long she was out of work. Having never been on unemployment, I'm not familiar with the process, but I thought some sort of formula is used to determine how much unemployment compensation you receive. Does anyone know how it works and is when is it beneficial to choose unemployment over severance?