Policy Statement
Severance pay may be granted to employees upon involuntary termination of employment with WNE, based on length of employment and position level.
Reason for Policy
WNE is a dynamic organization dedicated to providing a stable and secure work environment. We actively review our financial performance, seek opportunities for greater agility and efficiency, and strive to meet the needs of our students and the broader campus community. These efforts may include creating innovative programs, discontinuing others, restructuring work units, adjusting staffing levels, or making other decisions based on strategic and operational requirements, changes in funding, or other factors that impact the university. WNE complies with all relevant federal and state laws, including the Federal Worker Registration and Retraining Notification (WARN) Act, as applicable.
Severance is intended to help financially bridge an employee to another position or retirement and should be applied consistently according to length of employment and position level. The purpose of this policy is to outline the severance pay benefit of WNE.
Who is Governed by this Policy
Faculty and Staff
Policy
In the event of an involuntary termination due to a position elimination, Reduction in Force (RIF), multiple employee downsizing, and/or change in the University direction. Human Resources will work with the department to assess options and develop an implementation plan. The planning assumes that the duties associated with the eliminated positions are either permanently reassigned, the position is lowered or raised in terms of level or will no longer be performed.
WNE provides a severance benefit for the affected employee(s).
Exclusions: The following positions are not entitled to Severance benefits:
- Employees who are in the orientation period of 90 days
- Part-Time, Temporary positions
- Grant or contract funded positions and positions that have been funded 51% or more from sponsored projects (contract or grant funded positions) at any time during the preceding 24 months (two years)
- Positions subject to seasonal layoffs/partial year schedules if RIF occurs during the off season
- Reduction in full-time equivalency (FTE) where the employee remains in either full or partial benefits-eligibility status. (However, a reduction in FTE that drops the employee to a non-benefits-eligible status is eligible for RIF provisions.)
- The current position is eliminated, but the employee is reassigned to another position that allows the employee to remain in either full or partial benefits-eligibility status. (However, reduction in FTE that drops the employee to a non-benefits-eligible status is eligible for RIF provisions.)
- Employees who have been subject to any documented disciplinary action or performance accountability plan in the previous 12-month (one year) period.
- WNE is transferring or contracting current work to an outside vendor, and the WNE employee(s) performing that work are offered employment by that vendor.
- Does not apply to terminations for cause, refusal to be reassigned or refusal to be relocated to a new location.
Severance is calculated at the employee's current base salary rate, based on their hire date.
Severance Pay & Severance Agreement
Eligible employees who have signed a separation agreement will receive severance pay based upon years of service and position level.
A severance agreement will be provided to the employee at the time of the RIF notification. The severance agreement allows the employee 21 days (based upon age) and 7 calendar days to rescind the agreement from the date the employee receives the agreement to consider the terms and conditions of the agreement, including the requirement for the employee's release of claims.
The amount of severance pay will be calculated based on the employee's most recent base rate of pay and the budgeted standard hours and FTE of the position. Severance pay will be made by lump sum payment, minus withholdings required by law, including taxes.
The rate of severance is based on the length of service and the level of position with WNE, with a minimum payout set for each position.
Severance is calculated at the employee's current base salary rate, based on his/her anniversary date, and is prorated. (Severance pay for employees employed on a part-time basis is prorated). For employees who have worked both part-time and full-time while at WNE, severance is prorated and calculated based on the amount of time worked part-time and full-time.
Vacation
Accrued, but unused, vacation will be paid out to the employee in the severance check. Vacation will stop accruing as of the effective date of termination.
Paid Personal Days
Unused paid personal days will not be paid out.
Insurance Benefits
Health and dental insurance coverage, if applicable, ends on the last day of the month in which the employee receives the severance benefit. Upon termination of coverage, COBRA notification will be forwarded to you from Human Resources.
Consequences of Non-Compliance
Violation of this policy may result in disciplinary action, up to and including termination of employment.
Procedure
The Associate Vice President of Human Resources and the Employee will sign a Separation Agreement and General Release of Claims, which will outline the terms of the severance pay agreement.
Document History
Policy Origination Date: August 21, 2024
Who Approved This Policy
Associate Vice President of Human Resources
Contact
Office of Human Resources
Rivers Memorial