Human Resources Policies

POLICY: Position Discontinuation & Severance
Policy Number: HR-64
Effective Date: July 2002
Revisions: February 2004
Responsible Officer: Associate Dean, Planning and Operations


PURPOSE:
This policy was established to identify involuntary separation circumstances and to provide guidelines under which severance might be granted.

I. POLICY:
While the College of Medicine strives continuously to provide a stable and rewarding work environment, conditions require that it have flexibility for responding to changing financial conditions and organizational efficiencies. In doing so, it may be necessary on occasion to reorganize, enlarge, or reduce the personnel complement in some units.
Please note: Nothing contained in this policy is intended to alter the at-will employment relationship between the College of Medicine and its staff employees or to create legally enforceable contractual rights.

II. ELIGIBILITY:
Except as provided herein, this policy applies to all regular full-time and all regular part-time non-faculty employees who are separated from the College of Medicine involuntarily through no fault of his/her own, for reasons of reorganization or necessary staff reduction.

This policy does not apply in the following situations:
A. To employees who are still in their introductory period on the date of separation.
B. To employees classified as temporary, casual, or per diem.
C. To contract (or term employees) holding agreements with a specific end date.
D. To employees who occupy positions funded in whole or in part by grants, contracts or any other sources of external funding.
E. To employees in collective bargaining units.
F. In case of resignation, quit without notice, job abandonment, medical necessity, retirement, and involuntary separation due to unsatisfactory performance or misconduct.
G. To an employee whose job has changed as the result of a personnel reorganization without a decrease in salary.
H. Where an employee has been provided notice by the College that his/her position will be discontinued on a future date and is determined by the College to have engaged in unsatisfactory performance, misconduct or other violation of College policies during the notice period.
I. To an employee who is offered a transfer to a position within Drexel University, the Drexel University College of Medicine, or a parent, subsidiary or affiliate without a break in employment and without a decrease in salary.
J. Where an employee's position is eliminated because (1) the employee's functional responsibilities will be transferred to, assumed by or provided through another organization and (2) the employee is offered a substantially equivalent position without a break in employment and without a decrease in salary by that organization.

III. PROCEDURES:
A. In preparing to execute a reorganization and/or staff reduction plan, the supervisor of an affected employee should consult with the Human Resources Department to receive assistance with the EEO matters and severance determination and processing. Human Resource consultants will also assist with communications with the person(s) to be separated and remaining staff.

B. The supervisor will communicate privately and in person with the employee who is to be separated, providing a rationale for the reduction in positions to the extent practical, and describe the procedure for separation. The supervisor may request that a consultant from Human Resources attend the meeting. Normally, the employee ends active employment on the day of notice. However, by mutual consent, the supervisor and employee may decide that active employment will
continue through a certain date or contingency, in which case the employee's severance is paid at the end of active employment.

C. An agreement confirming the separation and the severance arrangements will be prepared by the Office of General Counsel.
D. Human Resources will consult with the separated employee on opportunities to continue benefits (through COBRA) and other programs offered by the College of Medicine.
E. Human Resources will also provide assistance in reviewing other employment opportunities within the College of Medicine and information regarding accessing unemployment benefits.

DETERMINING SEVERANCE PAY FOR POSITION DISCONTINUATION:
After an employee executes a separation agreement in a form satisfactory to the College of Medicine in which the employee releases the College of Medicine, its officers, and employees from all claims arising from her/his employment by the College of Medicine or the separation of her/his employment, the College of Medicine will provide a severance payment according to length of service as a regular full-time employee. (Length of service is adjusted hire date as recorded in
Human Resource Information System.) For part-time employees, the amount of severance payments will be adjusted on a pro rata basis.

Length of Service and Severance
End of Introductory Period - 1 year........ 2 weeks salary
1 year, but less than 2.....................….....1-month salary
2 years, but less than 3........................... 2 months salary
3 years, but less than 4........................... 3 months salary
4 years, but less than 5........................... 4 months salary
5 years +...................................…........... 5 months salary

The following provision applies to any employee who has been given notice that his/her position will be discontinued. In order for the employee to receive a severance payment under this policy, the employee must continue, throughout the period of notice, to demonstrate satisfactory performance, conduct and adherence to College policies, including the Policy on Attendance.

IV. Special Payment Rules for Transfers:
When an affected employee is offered, but refuses another position under Paragraph II. I or Paragraph II J, above, and the offered position has a salary equivalent to or greater than the discontinued position, no severance will be paid under this Policy.

When an affected employee is offered and accepts another position with Drexel University, Drexel University College of Medicine, or a parent, subsidiary or affiliate, as described in Paragraph II. I or Paragraph II J, above, without a break in service, and the offered position has a salary that is less than the discontinued position, the Drexel University College of Medicine will make a one-time payment, in lieu of a severance payment under this Policy, which will be based on the difference between the annual salary for the discontinued position and the annual salary for the offered position. This payment will be made in a lump sum amount, after the employee’s execution of a release agreement in a form satisfactory to the College of Medicine.

Employees who, after a position discontinuation, receive an offer and accept a transfer to a position with Drexel University, Drexel University College of Medicine, or a parent, subsidiary or affiliate, are subject to a new Introductory Period unless the Introductory Period is waived by the new supervisor. If the employee is terminated from the new position during the Introductory Period, the employee is eligible to receive a portion of the severance payment he/she would have received from the discontinuation of the former position unless the termination is due to the employee’s misconduct or unsatisfactory performance, subject to the following sentence and the employee’s execution of a separation agreement as described in Paragraph III above.

The severance payment amount will be pro rated to reflect the time worked in the new position; e.g., an employee who would have been entitled to five months salary from the discontinued position, who then works two months in the new position, would be eligible to receive three months as severance pay if the employee is terminated from the new position during the Introductory Period.

Additional Information: Inquiries regarding this policy should be directed to the Human Resources Department.