What a notice of separation is and when to use one

Executive overview

Employee separations create legal obligations many employers overlook. A notice of separation is a formal document provided to the employee — and in some states, the state government — whenever employment ends, regardless of who initiated it.

It protects the employer by ensuring the state has accurate information to evaluate unemployment claims. Failure to issue one on time can result in approved claims the employer could have contested.

Accurate, timely separation notices are the employer's primary defence against unwarranted unemployment claims.

What the notice covers

• Applies to voluntary and involuntary separations, including layoffs and leaves of absence
• Enables employees to file for unemployment if the reason qualifies
• Gives the state accurate address and account information to notify the employer if a claim is filed
• Verifies the accuracy of separation details provided by the claimant
• Timing requirements vary by state: some require issuance within 24 hours, others allow up to 30 days

What to include

• Business name and employer's state unemployment account number
• Employer's state unemployment mailing address
• Employee name and date of notice
• Date of termination
• Reason for separation
• List of company property to be returned (e.g. laptops)
• Details of final paycheck, benefits, severance, or compensation package
• Whether the separation is temporary or permanent