In some states (such as Georgia and Tennessee) an employer is required to provide an employee with a written separation notice when the employee’s employment ends—whether the employee is fired, laid off, or quits. In states in which a separation notice is required, it is often a one-page form document that is available on the state’s department of labor website.
A separation notice may be relevant when a former employee is applying for unemployment benefits or when a former employer is defending against a wrongful termination or discrimination claim. Although the employment of most employees in most states is at-will, an employer cannot fire or terminate an employee for an illegal or discriminatory reason (age, sex, race, religion, etc.).
For these reasons an employer should be familiar with the applicable law and may want to consult a lawyer when completing a separation notice or responding to a request for a separation notice.
In Kentucky, there is no statutory requirement for employers to provide a written separation notice to employees when they are terminated, laid off, or resign. Kentucky follows the at-will employment doctrine, meaning that either the employer or the employee can end the employment relationship at any time, for any reason, as long as it is not illegal or discriminatory. However, while a separation notice is not mandated by state law, it can still be a useful document for both parties. For the employee, it may serve as documentation when applying for unemployment benefits. For the employer, it can be a record that may help defend against potential wrongful termination or discrimination claims. Given the legal implications, employers in Kentucky may still want to consult with an attorney when dealing with separations to ensure compliance with all applicable federal and state laws, including those related to discrimination and wrongful termination.