POLICY: POSITION DISCONTINUATION & SEVERANCE
POLICY NUMBER: HR-64
Effective Date: July 2002
Revisions: January 2004, October 2004
Responsible Officer: Senior Vice President of Human Resources
PURPOSE:
This policy was established to identify involuntary separation
circumstances and to provide guidelines under which severance might be
granted.
I. POLICY:
While Drexel University 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 Drexel University 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 Drexel
University 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 University that his/her
position will be discontinued on a future date and is determined by the University
to have engaged in unsatisfactory performance, misconduct or other violation of
University policies during the notice period.
I. To an employee who is offered a new position within Drexel University, the
Drexel University College of Medicine, or a parent, subsidiary or affiliate without a
break in employment and without a decease in salary by that organization.
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 Drexel
University.
E. Human Resources will also provide assistance in reviewing other employment
opportunities within Drexel University and information regarding accessing
unemployment benefits.
IV. DETERMINING SEVERANCE PAY FOR POSITION DISCONTINUATION:
After an employee executes a separation agreement in a form satisfactory to
Drexel University in which the employee releases the University, its officers, and
employees from all claims arising from her/his employment by the University or
the separation of her/his employment, the University 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 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 University policies, including the Policy on Attendance.
Additional Information: Inquiries regarding this policy can be directed to the
Human Resources Department.
