We would like to know our obligations for pay in lieu of notice for an employee whose been with us for 2 1/2 years & whether or not he would get paid unemployment benefits if he's dismissed.

If this employee is not being terminated due to serious misconduct and does not have an employment agreement containing an effective termination provision, the employee is entitled to termination pay based on his/her length of service (2.5 years), age, and position. To receive an estimate of this employee's appropriate severance package, please follow the link below:
http://www.severancepaycalculator.com/