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 North Carolina, employers are not mandated by state law to provide a written separation notice to employees when they are terminated, laid off, or resign. Unlike Georgia and Tennessee, where specific forms are required, North Carolina does not have such a statutory requirement. However, employers in North Carolina must comply with federal laws that prohibit termination for illegal or discriminatory reasons, such as age, sex, race, religion, etc. While a separation notice can be a useful document in the context of unemployment benefits claims or defending against wrongful termination or discrimination claims, it is not a legal obligation in North Carolina. Employers in the state should still be aware of their legal responsibilities regarding termination and may wish to consult with an attorney to ensure compliance with all applicable laws and to obtain advice on best practices for documenting employment separations.