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Tina, Lawyer
Category: Employment Law
Satisfied Customers: 33166
Experience:  JD, BBA, recognized by ABA for excellence.
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We are cutting staff due to lack of work however the staff

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We are cutting staff due to lack of work however the staff we're cutting we would not re-hire due to performance issues. Are we obligated in any way and what do we put in the termination letter?

Hello and welcome.

My name is XXXXX XXXXX my goal is to provide you with excellent service today. I am sorry to hear of your difficult situation. Before I can give you an accurate answer to your question, please provide the following additional information:

Do you offer benefits to the employees, such as health insurance? Have the employees previously been warned about performance issues?

I look forward to assisting you as soon as I have received this information. Thank you.

Customer: replied 3 years ago.

No formal warnings have taken place. We do offer health insurance and 401k.

I see. Thank you for clarifying that, Donna.

There is no standard language required when terminating employees who do not have a contract typically. However, I would normally include a brief explanation as to why they are being terminated--due to work slow-down and performance issues, and also include a notification as to when their benefits cease and how they can expect to be contacted by the benefits representatives with regard to signing up for COBRA benefits and receiving their 401k benefits from their accounts, or rolling them over.

I would like to note that performance issues are normally not enough to prevent employees who are involuntarily terminated from receiving unemployment compensation if they are otherwise eligible, so you should expect unemployment applications being filed with the state commission.

It would typically be best to obtain each employee's signature on their notification letter if possible so you have proof it was received by them in the event they claim they were not notified of the termination of their benefits.

I hope this helps clarify the situation for you. Please remember to rate my service once you have all the information you need so I will be compensated for my time from the deposit you posted with this website. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!


Customer: replied 3 years ago.

What obligation do we have for COBRA benefits? Do we have to pay a portion?

Hello again, Donna. Do you have 20 or more employees?
Customer: replied 3 years ago.

We have less than 20.

NY mini-COBRA typically applies to employers with 2-19 employees. The employer may normally charge the employee up to 102% of the premium to cover administrative costs. Here is a link which provides more information on the program:
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