The labor market fluctuates, and for a multitude of possible reasons, we have turnover.  Most all employers will have to deal with employment separation at some point. 

In general, an employee is eligible for unemployment benefits if he/she; 1) worked for an employer who paid unemployment insurance premiums or carried self-insurance, and 2) the separation was no fault of the employee (layoffs/reductions in force).  Employees who voluntarily resign (quit) or are discharged for their own misconduct (fired for cause) do not normally qualify for unemployment benefits.

The Claim Process

1 – Employee files for unemployment benefits after separation from employment.

2 – The NC Department of Commerce, Division of Employment Security (DES) sends the employer notice of the claim and the “Request for Separation Information from Employer” form.

• Sample Form: https://www.ncesc1.com/business/downloads/NCUI_500AB_SAMPLE.pdf
• This form allows the DES to assure that the employee’s claim is valid and gives you a chance to “give your side of the story”.  For example, if the employee quit on his/her own terms, this form allows you to communicate that to DES. 
• Be sure you complete the entire form, and send it back by the requested deadline (within 10 days).  Failure to meet the deadline could mean that the employee is granted unemployment benefits regardless of the reason of separation.
• Complete the form honestly and appropriately, as it does become part of public record, and will be a basis for determining whether or not the employee receives benefits.  If the decision is appealed, the information will also become evidence in the appeals hearing.  The form also allows you to also attach supporting documents (such as a resignation letter or disciplinary record).

3 – Upon receipt of the completed Request for Separation Information, the DES adjudicator issues a determination.

4 – If either party wishes to appeal the decision, DES will schedule a telephone or in-person hearing.

• Appeals Information: http://www.ncesc1.com/individual/downloads/NCESC568E.pdf

For more information about unemployment benefits:  https://www.ncesc1.com/Business/UI/UiClaims.asp

Note:  Examples above based on the process in North Carolina.