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 Vermont, 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. Vermont follows the at-will employment doctrine, meaning that either the employer or the employee can end the employment relationship at any time without notice and for any reason that is not illegal or discriminatory. However, while Vermont law does not mandate separation notices, providing such documentation can be beneficial for record-keeping purposes and may be helpful for employees seeking unemployment benefits. Employers in Vermont should be aware of federal laws and anti-discrimination statutes that protect employees from being fired for illegal reasons. It is advisable for employers to consult with an attorney when dealing with separations that could lead to legal claims, such as wrongful termination or discrimination allegations.