What the Form Is For
Form IA 12.3, officially titled "Record of Employment," is a mandatory separation notice that New York employers must provide to employees when their employment ends or their work hours are significantly reduced. This form serves as official documentation informing workers of their potential eligibility to file for Unemployment Insurance (UI) benefits with the New York State Department of Labor. The form contains critical employer identification information—including the employer's name, New York State Employer Registration Number, Federal Employer Identification Number, and the address where payroll records are kept—along with employee identification details that help streamline the UI claims process.
The form functions as both a notification tool and an administrative bridge between employers, separated workers, and the state's unemployment system. When properly completed and distributed, Form IA 12.3 ensures that workers understand their right to apply for unemployment benefits while providing the Department of Labor with accurate employer information needed to process claims efficiently and charge benefits to the correct employer accounts. This form became particularly important following the November 2023 amendments to Section 590 of the New York Labor Law, which expanded employer obligations beyond traditional separations to include partial unemployment situations.
When You’d Use It
When It’s Required
New York employers must complete and provide Form IA 12.3 to employees in several specific situations, whether the separation is employer-initiated or employee-initiated. The law does not distinguish between voluntary and involuntary separations—the form is required regardless of who ended the employment relationship.
You must provide Form IA 12.3 when an employee experiences any of the following:
- permanent layoff (when the employee is let go with no expectation of return)
- indefinite layoff (temporary separation without a specific return date)
- temporary layoff (short-term separation with anticipated recall)
- discharge or termination for any reason
- voluntary resignation or quitting
- reduction in hours that results in the employee working fewer than 30 hours per week or earning less than the state's maximum benefit rate in any week
This last category represents a significant expansion enacted in 2023, requiring employers to provide notice when partial unemployment eligibility may occur due to schedule reductions.
The form must be given to the employee on the date of separation or when the hour reduction takes effect. Employers should keep copies for their records as part of standard payroll documentation.
Exceptions
There are limited exceptions to this requirement:
- educational institutions need not provide the form if they have offered an employee reasonable assurance of continued employment in the next academic year
- employers operating under an approved Shared Work Plan follow different notification procedures
Employers with fluctuating weekly schedules—such as restaurants—must still comply when an employee's hours drop below the 30-hour threshold or earnings fall below the maximum benefit rate. Temporary staffing agencies must provide the form when there is a multi-day gap between assignments.
Key Rules or Details for 2023
Core Compliance Rules
Understanding the fundamental rules governing Form IA 12.3 helps employers maintain compliance and avoid potential penalties.
- Employers must use the official New York State Department of Labor form
- Substitute forms require prior approval
- The form is available for free at dol.ny.gov
2023 Legal Update
The November 13, 2023 effective date marks a major change:
- expanded requirement to include partial unemployment
- applies even if the employer believes the employee won’t qualify
Required Information
The form must include:
- employer’s legal business name
- New York State Employer Registration Number
- Federal Employer Identification Number (FEIN)
- payroll records address
- date issued
- employee’s full name and Social Security number
Compliance Risks
While no direct fines are specified, risks include:
- inability to contest benefit charges
- ongoing incorrect charges
- Department of Labor audits or investigations
- higher unemployment insurance rates due to experience rating
Step-by-Step (High Level)
Step 1: Gather Required Information
Collect:
- Employer Registration Number
- FEIN
- payroll records address
- employee’s full name and SSN
Step 2: Complete the Employer Section
Fill in:
- business name (exact match to registration)
- Employer Registration Number
- FEIN
- payroll address
Step 3: Complete the Employee Section
Have the employee provide:
- full legal name
- Social Security number
Optional internal tracking fields may also be completed.
Step 4: Date and Distribute the Form
- Enter the correct date
- Provide the form immediately
- Keep a copy for at least six years
Step 5: Explain Its Purpose
Explain that:
- the form allows them to apply for UI benefits
- it does not guarantee eligibility
Common Mistakes and How to Avoid Them
Mistake 1: Using an Outdated Version
Always use the November 2023 or newer version.
Mistake 2: Not Providing the Form in All Cases
The form is required for:
- voluntary resignations
- reduced hours situations
Mistake 3: Incorrect Employer Information
Double-check:
- Employer Registration Number
- FEIN
- payroll address
Mistake 4: Delayed Distribution
Provide the form immediately at separation or hour reduction.
Mistake 5: Assuming the Form Determines Eligibility
The Department of Labor—not the employer—determines eligibility.
Mistake 6: Poor Record-Keeping
Keep copies for at least six years.
What Happens After You File
From the Employee’s Perspective
The employee may:
- file a claim online or by phone
- use the form’s information for faster processing
- submit additional identification and work history
From the Employer’s Perspective
You may receive:
Notice of Potential Charges (Form LO 400)
- shows claim details and potential charges
- requires response within 10 days
Valid Reasons to Contest
- misconduct termination
- voluntary quit without good cause
- incorrect wages or employment dates
- employee still working
- refusal of suitable work
Ongoing Account Impact
- benefits charged affect your UI rate
- you’ll receive Form IA 96 (monthly charges)
- yearly rate updates depend on claims history
Reemployment Opportunities
- you can rehire the employee
- refusal of suitable work may disqualify them
- notify the Department if refusal occurs
FAQs
Do I need to provide Form IA 12.3 if an employee quits voluntarily?
Yes. The law requires you to provide the Record of Employment form for all separations regardless of whether the employee quit, was laid off, or was terminated. The form simply notifies workers of their right to apply for unemployment benefits—the Department of Labor later determines actual eligibility based on the circumstances. Even if you believe a worker who quit will not qualify for benefits, you must still provide the form.
What if I reduce an employee's hours from 40 per week to 32 per week—do I need to give them Form IA 12.3?
It depends on their earnings. Since November 13, 2023, employers must provide Form IA 12.3 whenever an employee's hours are reduced below 30 hours per week OR when their weekly earnings fall below the state's maximum benefit rate. If they still earn above the threshold, no form is required.
Where can I get copies of Form IA 12.3?
Download the form from the New York State Department of Labor website. You can also request copies via phone, email, or fax. Always use the November 2023 version or later.
What happens if I forget to give an employee Form IA 12.3 and they file for unemployment?
There is no direct fine, but it may weaken your ability to contest claims and could lead to audits or enforcement actions. Proper documentation strengthens your position.
Can I create my own version of the Record of Employment form?
No, unless approved by the Department of Labor. Most employers use the official version for simplicity and compliance.
Does providing Form IA 12.3 mean the employee will receive unemployment benefits?
No. It only informs the employee of their right to apply. Eligibility is determined by the Department of Labor.
I operate a restaurant with fluctuating schedules. Do I need to provide the form every time hours drop below 30?
Yes, if the reduction creates partial unemployment eligibility. Employers must track hours and issue the form when thresholds are met.