Employment Security Commission V. Doughty

James T. Doughty, herein referred to as the claimant, and his son were engaged in a wholesale electrical supply business. The business was organized as a corporation with the claimant and his son each holding 50% of the stock. The claimant was the president and his son was the vice-president. In 1965 the corporation filed for reorganization of the business under Chapter XI of the Federal Bankruptcy Act. The Court-appointed receiver decided that the number of employees of the business had to be reduced to one. The claimant continued on the payroll until 2 December 1965. The claimant was a divorced man. His son was a married man with two small children. Understandably, the claimant elected to permit his son to retain the sole position of employment. In our opinion, this humane and realistic decision did not constitute a voluntary termination of employment by the claimant.