[smackfu]

I can't imagine that would work, otherwise every company would do something like that to get out of paying unemployment. Like... "We're not firing you, we are just going to pay you minimum wage now, and if you choose to quit, that's your choice."

[hga]

That's a constructive termination, and in theory your unemployment office would consider it to be such. I've only collected it twice, and in both cases the company that laid me off made ridiculous claims it was for cause, they seemed to be very savvy about the games some employers play.

But see jack-r-abbit in the other subtread, this will be done as a layoff in a soon to be dead company (which obviously won't care about its increased unemployment insurance payments) and an ... opportunity to join the other company, of course on their terms.