Is a termination letter required in California?
Yes, employers must give a termination letter called a Notice to Employee of Change in Relationship upon terminating an employee.
Under Section 1089 of the California Unemployment Insurance Code, an employer must immediately notify an employee of any change in the employment relationship such as employment termination. This sample notice (PDF) meets the minimum requirements. Written notice must be given immediately to employees of their layoff, discharge, or fired.
No written notice is required if it is a voluntary quit, promotion or demotion, change in work assignment or location (some changes in location require a WARN notice), or if work stopped due to a trade dispute.
Employers are required by federal laws to give their employees certain notices and forms upon termination. California poses additional requirements for employers. While this list is not exhaustive, and a company should consult an employment attorney when firing an employee in California, below are the main forms and notices an employer needs to provide when firing an an employee. In addition, employers must be cautious in using the correct words when firing an employee: Phrases for Firing an Employee
Before firing an employee, consult with Nakase Wade’s employer lawyers to ensure you do not put your company at risk for legal action. Every situation for firing an employee is unique. This article is for general information.
In this article, our employment attorney discusses:
Employee Change of Status Form Template
The following is California’s EDD sample Notice of Change in Status Form.
NOTICE TO EMPLOYEE AS TO CHANGE IN RELATIONSHIP
(Issued pursuant to provisions of Section 1089 of the California Unemployment Insurance Code)
Name: _____________________
SSN: _____________________
[Note to employers: select one]
- You were/will be laid off/discharged on ___date_____.
- You were/will be on leave of absence starting ___date_____.
- On ___date_____ employment status changed/will change as follows:
___________________
Employer’s Name
___________________
By: Name
How Much Notice Do I Need to Give an Employee When Terminating Them?
In California, there is generally no requirement that an employer gives their employees two weeks’ notice, or any notice for that matter, before terminating an employee. Because California is an at-will state, you can terminate an employee with or without cause at any time. California law requires employers to give written notice of a change in relationship to any employee who is discharged, laid off, given a leave of absence, or whose status changes from employee to independent contractor.
What Forms Does Federal Law Require Me to Give to a Terminated Employee?
- The IRS requires employers to give employees notices of their rights to retirement benefits.
- If you have 20 or more employees, you must provide a terminated employee with a COBRA notice and election form. This explains what happens to their health benefits for them and their dependents.
- If the termination is because of a WARN Act position elimination or layoff, a notice must be sent to employees 60 days before termination.
What Forms Does California Law Require Me to Give to a Terminated Employee?
- All employers must give their employees written Notice to Employee as to Change in Relationship form upon termination. If it is a promotion or demotion, change in location, change in work assignment, voluntary quit, or work stopped due to a trade dispute, the form is not required.
- Employers with 20 or more employees must provide terminated employees with a Health Insurance Premium Payment (
HIPP) Program. - Employers must offer terminated employees information about their Cal-COBRA continuation rights, regardless of the size of their workforce.
- The EDD requires all employers to provide terminated employees with an unemployment benefits pamphlet by the effective date of termination.
- Employers must provide notification of all conversion coverage, continuation, and disability extension coverage which the employee may still be eligible after termination.
- Employees must be given at least 60 days advance notice in writing of any mass layoffs or plant closure.