Separation Notices: The HR Document You Shouldn't Skip
Reality sets in: you're losing an employee. Whether the employee gave their notice and moved on to a different company, or if you had to terminate them for one reason or another, there are certain steps to follow when it comes to Separation Notice paperwork.
Some states require specific paperwork, such as info on how to file for unemployment insurance or a specific form to be used to notify the state. Your first step is knowing what's required in your state so you don't get into trouble on a technicality.
Even though some states don't require a separation notice, we recommend completing one anyway. And this applies even when the employee resigns in a professional manner, giving proper notice with a positive attitude. A separation notice conveys to the ex-employee how the company’s records will show the separation, and provides key details like the official last date of employment. Having this clarity, in writing, can decrease the chances of lawsuits/unemployment claims or follow-up conversations about the details of the separation.
Here are a few key tips when filling out a separation notice.
Clearly state the reason for the separation. Lawsuits and unemployment claims increase when you don't give a reason for termination. This omission leaves the door wide open for ex-employees to invent their own reason, which will rarely be accurate and will usually paint the company as the villain while the employee was just an innocent victim. It's best to provide the real reason, which has a better chance of “shutting down” the person’s ability to generate a reason that is illegal.
Keep it short and sweet. You SHOULD provide a reason, but a separation notice is not the place to provide all the supporting evidence. Include just one or two statements or sentences for each reason the person was terminated, and leave it at that.
Avoid generalizations. Do NOT use blanket phrases like “not a good culture fit.” Even if true, this vague statement can lead someone to assume that the REASON they didn’t fit in was their membership in a specific protected class or something else that's legally concerning. Instead of generalizing, get to the root cause. WHY didn’t they fit in? Was it because they were rude to their coworkers? Was it insubordination? Perhaps it was a tendency to gossip or “one up” everyone else? By breaking the statement down into the root causes, you can provide specific details that are harder to refute or turn into an illegal employment practice.
Use your employee handbook as a guide. A well-constructed employee handbook can be a gold mine of useful statements to use in a separation agreement, giving you the specifics you need to provide legally-defensible excuses for termination. A handbook can outline policies that are clearly defined as unacceptable, such as:
Excessive absenteeism/tardiness
Failure to protect the assets or reputation of the company
Insubordination
Sexual (or other) harassment against another employee (or vendor, customer, etc.)
Gossiping about coworkers
Engaging in work that constituted a conflict of interest
Failing to report a traffic violation, leading to an inability to insure the employee
Allowing a personal relationship to impact employee’s ability to successfully complete assigned job tasks
Ask for help. Whether you want advice as you make the decision to terminate someone’s employment or if it's assistance writing the separation notice (or an employee handbook!), don't be afraid to call us. Or call your lawyer. Some cases are clear cut and relatively easy to navigate, but others aren’t. Don't get yourself into legal hot water by guessing at the best way to proceed. We're here for you!
