Maine Notification of Layoff
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FAQ
Maine labor laws do not generally require employers to provide employees with severance pay. Typically, if an employer chooses to provide severance benefits, it must comply with the terms of its established policy or employment contract.
Maine does not have a law requiring employers to terminate employees in person. An employer may terminate an employee by phone, letter, email, or any reasonable means of communication.
A 30 to 90 day notice period is standard for terminating the workforce in your organization. Stated under the Industrial Disputes Act of 1947, the law mandates that when terminating more than 100 members working in a manufacturing plant, mine or plantation unit, government approval is required.
An employer who wants to avoid paying severance must provide advanced written notice the longer you have worked at the company, the more notice must be provided. According to the employment standards in Alberta: After serving three months, an employer must give you one week's notice.
Maine employers and employees work under a system called "employment-at-will." This means that you are free to quit your job whenever you want. Your employer is also free to fire you for any reason or no reason at all. The only limit is that your employer cannot fire you based on discrimination or retaliation.
Though sometimes used interchangeably, termination pay and severance pay are not the same thing. While all employees of three months or longer with a company are entitled to termination pay (in place of notice) upon dismissal, not everyone is entitled to severance pay.
The severance pay offered is typically one to two weeks for every year worked, but it can be more. If the job loss will create an economic hardship, discuss this with your (former) employer. The general practice is to try to get four weeks of severance pay for each year worked.
Under Maine law, only the unused accrued vacation time is required to be paid upon termination in cases where the employer's policy specifically states that the unused balance will be paid upon termination.
How to Avoid Layoffs: Cost-Cutting Strategies for BusinessPut Promotions and Raises on Hold.Consider Executive Compensation Adjustments.Reduce Employee Hours.If Necessary, Furlough Employees.Evaluate Your Company's Top Performers.If Possible, Pay People Now.
