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 Indiana, there is no specific state statute that requires employers to provide a written separation notice to employees when their employment ends, whether they are fired, laid off, or quit. Unlike Georgia and Tennessee, Indiana does not have a one-page form or similar document that employers must complete upon the separation of an employee. However, employers in Indiana must still comply with federal laws and regulations regarding employment 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 Indiana state law, it can still be a good practice for employers to document the reasons for an employee's separation, especially in the event of a dispute or when the former employee is applying for unemployment benefits. Employers in Indiana may want to consult with an attorney to ensure they are following best practices and to receive guidance on how to handle terminations and any subsequent documentation or inquiries.