NOTICE OF INVOLUNTARY TERMINATION OF EMPLOYMENT
[COMPANY LEGAL LETTERHEAD]
TABLE OF CONTENTS
- Document Header
- Definitions
- Operative Provisions
- Representations & Warranties
- Covenants & Restrictions
- Default & Remedies
- Risk Allocation
- Dispute Resolution
- General Provisions
- Execution Block
- Exhibits & Attachments
1. DOCUMENT HEADER
1.1 Parties.
This Notice of Involuntary Termination of Employment (the “Notice”) is issued by [COMPANY LEGAL NAME], a [STATE OF INCORPORATION] [corporation/LLC/etc.] (“Company”), to [EMPLOYEE FULL LEGAL NAME] (“Employee”). Company and Employee are each a “Party” and, collectively, the “Parties.”
1.2 Effective Date.
This Notice is effective as of [DATE OF ISSUANCE] (the “Effective Date”).
1.3 Recitals.
A. Employee has been employed by Company pursuant to that certain [TITLE OF OFFER LETTER / EMPLOYMENT AGREEMENT, if any] dated [DATE] (the “Employment Agreement”).
B. Company has determined, in its sole discretion, to terminate Employee’s employment for [CAUSE/NO CAUSE/REORGANIZATION/OTHER], effective as of the Termination Date (defined below).
C. Company desires to memorialize the terms of such termination, including compliance with North Carolina employment statutes, federal COBRA requirements, and applicable unemployment insurance procedures.
2. DEFINITIONS
For purposes of this Notice, the following terms have the meanings set forth below:
“Accrued Obligations” – All earned but unpaid wages, salary, accrued but unused vacation/paid time off (“PTO”), and any reimbursable business expenses incurred through the Termination Date, in each case to the extent payable under Company policy and applicable law.
“COBRA” – The Consolidated Omnibus Budget Reconciliation Act of 1985, 29 U.S.C. § 1161 et seq., and the regulations promulgated thereunder.
“Final Paycheck” – The payment described in Section 3.3, issued in accordance with N.C. Gen. Stat. § 95-25.7 (2023).
“Termination Date” – [DATE AND TIME], being the last moment Employee is classified as an employee of Company for all purposes.
[// GUIDANCE: Add additional defined terms (e.g., “Company Property,” “Confidential Information”) if tailored post-separation obligations are to be included.]
3. OPERATIVE PROVISIONS
3.1 Notice of Termination.
Company hereby terminates Employee’s employment effective as of the Termination Date. Employee acknowledges receipt of this Notice on the Effective Date.
3.2 Final Day Obligations.
a. Return of Property. On or before the Termination Date, Employee shall return to Company all Company Property, including but not limited to keys, access cards, documents (electronic or hard-copy), laptops, and other equipment.
b. Separation Process. Employee shall cooperate in completing all exit interviews and administrative procedures reasonably requested by Company.
3.3 Final Paycheck.
In compliance with N.C. Gen. Stat. § 95-25.7 (2023), Company will deliver Employee’s Final Paycheck on or before [NEXT REGULAR PAYDAY DATE] via [DIRECT DEPOSIT/CHECK]. The Final Paycheck will include:
i. All Accrued Obligations; and
ii. Any statutory deductions and authorized withholdings.
[// GUIDANCE: If the employee is receiving severance, insert a severance subsection with release-of-claims language and attach a separate release agreement.]
3.4 Benefits & COBRA.
a. Group Health Plan. Employee’s participation in the Company’s group health plan will terminate at 11:59 p.m. on the Termination Date, subject to COBRA continuation rights.
b. COBRA Notice. A separate COBRA Election Notice, together with required forms, will be sent to Employee’s last known address within the time period mandated by 29 U.S.C. § 1166.
c. Other Benefits. Eligibility for all other Company-sponsored benefits (e.g., life and disability insurance, 401(k)) ends on the Termination Date, unless otherwise provided by the governing plan documents.
3.5 Unemployment Insurance.
Employee may be eligible to apply for unemployment insurance benefits through the North Carolina Division of Employment Security (“DES”). Company will timely comply with any DES requests, including the filing of any required separation notice or statement. Eligibility determinations are made solely by the DES.
4. REPRESENTATIONS & WARRANTIES
4.1 Company Representations.
a. Authority. Company is duly authorized to issue this Notice.
b. Compliance. The terms herein comply with all applicable federal and North Carolina employment laws as of the Effective Date.
4.2 Employee Representations.
Employee represents that Employee has returned, or will return, all Company Property and proprietary information, and that Employee will not retain copies in any form.
5. COVENANTS & RESTRICTIONS
5.1 Continuing Obligations.
Employee acknowledges and reaffirms all post-employment obligations contained in the Employment Agreement, including but not limited to confidentiality, non-solicitation, and intellectual property covenants.
5.2 Non-Disparagement.
Employee agrees not to make statements that could reasonably be expected to disparage Company, its officers, directors, or employees.
6. DEFAULT & REMEDIES
6.1 Events of Default.
Failure by Employee to return Company Property or comply with Section 5 constitutes a default.
6.2 Remedies.
Upon default, Company may pursue (i) injunctive relief; (ii) recovery of actual damages; and (iii) payment of reasonable attorneys’ fees and costs, subject to court determination.
[// GUIDANCE: If a separate severance agreement is used, cross-reference its dispute and remedy provisions to avoid inconsistency.]
7. RISK ALLOCATION
[This Section intentionally omitted. No indemnification, liability caps, or insurance obligations apply under the supplied metadata.]
8. DISPUTE RESOLUTION
8.1 Governing Law.
This Notice shall be governed by, and construed in accordance with, the laws of the State of North Carolina, without regard to its conflicts-of-law principles.
8.2 Forum Selection.
The state courts located in [COUNTY], North Carolina shall have exclusive jurisdiction over any dispute arising out of or related to this Notice.
[// GUIDANCE: Because arbitration and jury waiver are “not applicable,” they are intentionally omitted.]
9. GENERAL PROVISIONS
9.1 Entire Agreement.
This Notice, together with any surviving provisions of the Employment Agreement and any executed separation or release agreement, constitutes the entire understanding of the Parties regarding the subject matter hereof.
9.2 Amendments; Waivers.
No amendment or waiver shall be effective unless in writing and signed by the Party against whom enforcement is sought.
9.3 Assignment.
Employee may not assign any rights or delegate any obligations under this Notice. Company may assign this Notice to any successor in interest.
9.4 Severability.
If any provision of this Notice is found unenforceable, the remaining provisions shall remain in full force and effect, and the unenforceable provision shall be reformed to the minimum extent necessary to render it enforceable.
9.5 Electronic Signatures; Counterparts.
This Notice may be executed in counterparts and delivered electronically, each of which shall be deemed an original and, collectively, one instrument.
10. EXECUTION BLOCK
IN WITNESS WHEREOF, the Parties hereto have executed this Notice as of the Effective Date.
COMPANY:
[COMPANY LEGAL NAME]
By: ____
Name: [AUTHORIZED SIGNATORY]
Title: [JOB TITLE]
Date: ________
EMPLOYEE:
[EMPLOYEE FULL LEGAL NAME]
Date: _____
11. EXHIBITS & ATTACHMENTS
• Exhibit A – COBRA Election Notice (Sample Form)
• Exhibit B – Schedule of Accrued Obligations & Final Pay Calculation
• Exhibit C – North Carolina DES Unemployment Insurance Information Sheet
[// GUIDANCE: Attach Company’s standard forms or the official model notices issued by the U.S. Department of Labor for COBRA, as well as any DES informational pamphlet or separation notice form required at the time of separation.]