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 Massachusetts, there is no specific state statute that requires employers to provide a written separation notice to employees when their employment ends, whether due to termination, resignation, or layoff. Unlike states such as Georgia and Tennessee, where a separation notice is mandated, Massachusetts employers are not obligated to follow such a procedure. However, employers in Massachusetts must still comply with federal laws and regulations regarding employment termination, and they cannot terminate employees for illegal or discriminatory reasons. While a separation notice is not a legal requirement in Massachusetts, it can still be a good practice for employers to provide documentation summarizing the terms of an employee's departure for clarity and to avoid potential disputes. Employers in Massachusetts should be aware of their obligations under both state and federal law, and may wish to consult with an attorney for guidance on best practices and to ensure compliance with all applicable employment laws.