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 Maryland, 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, layoff, or resignation. Unlike Georgia and Tennessee, Maryland does not have a one-page form document for this purpose available on the state's department of labor website. However, employers in Maryland must still comply with federal laws and regulations regarding termination and discrimination. It is important for employers to be aware that they cannot terminate an employee for illegal or discriminatory reasons, such as age, sex, race, religion, etc. While a separation notice is not mandated by Maryland state law, it can still be a good practice for employers to provide one as it may be relevant in unemployment claims or in defending against wrongful termination or discrimination claims. Employers in Maryland may want to consult with an attorney to ensure they are following best practices and to receive guidance on how to handle separations in a legally compliant manner.