” Employee separation” or “separation of employment” refers to the process of managing the end of the employment cycle. There are many different types of separations which include both voluntary and involuntary. ESC recommends a formal process for all types of separation. It is important to note, if you are an ESC client we are happy to assist you with any or all steps of these processes.
Voluntary Separation Process:
ESC recommends the following process for when an employee separates from your company voluntarily. Examples include voluntary quit, resignation, job abandonment and retirement.
1. When possible, employees should typically provide written notification with a minimum of two weeks’ notice of their intention to separate from the company.
2. After management receives this letter, they should forward it to their HR department along with a signed “Separation Notice”. This separation notice will serve as notice to stop the employee’s payroll and benefits.
3. Next, a neutral party should conduct an exit interview with the employee for the purpose of discovering his or her reasoning for leaving your employ.
4. Finally, mail a letter to the employee confirming their resignation and cancellation of benefits. Also, give the employee a letter regarding the option for filing for unemployment. Please note this does not guarantee the employee will be found eligible for unemployment. (See below for an explanation on why these letters are sent.)
5. Keep copies of all separation documents in the employee’s personnel files.
Involuntary Separation Process:
ESC recommends the following process for when an employee separates from your company involuntarily. Examples include termination for poor performance or misconduct, layoff, plant closure and disability.
1. Employers that decide to separate an employee should first ensure that they are in compliance with Federal and State labor laws and review if steps have been taken (for example, progressive discipline) to avoid perception of violation of these laws. (We recommend our clients they speak with their HR Consultant before terminating an employee.)
2. Complete a “Separation Notice” for the employee to sign on his or her last day that details the reason for the separation. ESC recommends in most cases that employers share specific reasons for terminating an employee. This helps lessen the amount of confusion and frustration of the person being separated. However, we recommend you do not give the employee a copy of this notice. You are not required to do so and it is for internal purposes only.
3. Have a formal separation meeting between the employee and a manager/owner. This is where the employee will find out he or she is being let go from the company. We strongly recommend a witness. (We encourage our clients to contact their HR Consultant to assist with this process.)
4. Mail a separation of employment letter to the employee confirming their separation and cancellation of benefits. (This is not the same as a internal separation notice. See below for an explanation on why this letter is sent.) Also, give the employee a letter regarding the option for filing for unemployment. Please note this does not guarantee the employee will be found eligible for unemployment.
5. Keep copies of all separation documents in the employee’s personnel files.
A Word about Separation of Employment Letters
The New York State Department of Labor requires all employers to “notify any employee separated from employment, in writing, of the exact date of such separation as well as the exact date of cancellation of employee benefits…….connected with such separation”. This applies to all employees regardless of the reason that they left the company, including voluntary resignation and temporary or seasonal layoffs. When sending this letter, we recommend you do not include the reason for separation, only the date. Additionally, New York State requires employers to include information on how the employee may file for unemployment insurance benefits. However, this does not mean the employee is eligible for unemployment. In fact, it has nothing to do with their eligibility.
Review all unemployment claims that are filed. Protest the claims for individuals who resigned or were discharged due to misconduct. As a result, you will ensure you keep your unemployment rate as low as possible. If you are an ESC client, we do this process for you.
For more information on controlling your unemployment rate, see Managing Your Unemployment Claims.
About ESC
ESC works with hundreds of clients to help them control their unemployment costs by putting proactive HR systems in place, responding to unemployment claims on their behalf, and ensuring that questionable claims are contested.
ESC is an Outsourced Human Resource (HR) Firm and Professional Employer Organization (PEO) headquartered in Buffalo, NY. The only locally owned PEO, ESC provides services to hundreds of businesses locally, regionally and throughout the country, offering unmatched expertise in all areas of HR outsourcing and employment administration, all under one roof.