Human Resources Policies

HR98 Severance Payment Provisions for Staff Employees

Policy Status: 

Under Review

Policy Steward: 

Vice President for Human Resources

POLICY'S INITIAL DATE: May 1, 2011

THIS VERSION EFFECTIVE: May 1, 2011

NOTE: The implementation of SIMBA requires the review of many University Human Resource Policies and Guidelines. After consultation with key constituencies, work has been underway to update, consolidate, and improve our policies and guidelines to better serve the Penn State community. However, please be aware that due to the volume of the impacted policies and guidelines, not all policies are currently updated to reflect changes which have been communicated; however, the policies will be updated soon and have appropriate and applicable effective dates listed. We appreciate your patience as we work through this review process. Any questions can be directed to HR Services at 814-865-1473 or submit an inquiry via WorkLion.

Contents:

PURPOSE:

To provide the criteria under which an employee laid off under policy HR97, Layoff Provisions for Staff Employees, is eligible to receive a severance payment.

OVERVIEW:

Length of University employment is measured in months of continuous employment in a Standing or Fixed-Term I appointment from the date of last hire and includes leaves of absence. Employment ceases to be measured when an employee quits, resigns, or is dismissed.

An employee may receive a maximum of 26 weeks of pay as severance payment. Such payment is made as a lump-sum and is reduced by all applicable deductions.

The University and employee must execute an agreement and general release memorializing the terms and conditions of the severance payment.

STANDING APPOINTMENTS:

An employee on a Standing appointment who is laid off under policy HR97, Layoff Provisions for Staff Employees, will receive a one-time, lump-sum severance payment in accordance with the following schedule:

Layoff Provisions for Staff Employees
Length of Service Severance Pay
Less than 1 year (Probationary) none
1 to 22 years 4 weeks* plus 1 week's pay for each year of service
Greater than 22 years 26 weeks*

*Any time paid, but not worked, during the four-week notice period will be deducted from the severance payment.

FIXED-TERM I APPOINTMENTS:

An employee on a Fixed-Term I appointment who is laid off under policy HR97, Layoff Provisions for Staff Employees, and is not given opportunity to work the four-week notice period will receive a one-time, lump-sum severance payment equal to four-weeks' pay. If the employee is given opportunity to work only a portion of the four-week notice period, the employee will receive the difference for the part of the four-week notice period not worked as severance payment.

HR88 APPOINTMENTS:

The weekly pay rate is calculated by dividing the actual annual salary by 52 weeks.

CROSS REFERENCES:

HR06 - Types of Appointments

HR88 - Full-Time Equivalent Appointments

HR97 - Layoff Provisions for Staff Employees

 

Date Approved: 

May 1, 2011

Date Published: 

May 1, 2011

Effective Date: 

May 1, 2011