Separation Pay (VI.F.1)

Volume VI: Human Resources
Chapter F: Terms and Conditions of Employment
Responsible Executive: Chief Financial Officer and Treasurer
Responsible Office: Human Resources
Date Issued: May 1, 2002
Date Last Revised: March 1, 2025

Contacts
Statement of Policy
Reason for This Policy
Individuals and Entities Affected
Exclusions
Responsibilities
Definitions (defined terms are capitalized throughout the document)
Related Documents, Forms and Tools
Website Address for This Policy
History and Updates
Appendix

Contacts

Policy Clarification

Associate Vice President, Benefits and Payroll
765-494-2222 | hr@purdue.edu

Campus Specific Questions

Fort Wayne: HR
260-481-6677 | hr@pfw.edu

Northwest: HR
219-785-5301 | hr@pnw.edu

West Lafayette: HR
765-494-2222 | hr@purdue.edu

Statement of Policy

Purdue University provides Separation Pay to eligible employees whose employment is terminated by the University. Terminations must be conducted in consultation with Human Resources. Eligible employees are those who have been employed in one of the following appointment types for more than 90 consecutive calendar days immediately prior to being terminated by the University:

Executive
Management
Professional
Operations/Technical
Administrative and Operational Support
Police, Fire and Skilled Trades
Lecturer

Generally, an employee’s benefits end on the employee’s last date of employment. Receipt of Separation Pay does not extend the employee’s term of employment or benefits coverage period. Employees who resign in lieu of being terminated by the University will receive Separation Pay if they meet all other eligibility requirements outlined in this policy.

Reason for This Policy

In situations when Purdue terminates employment, it is often in the best interest of the employee and the University to make the termination effective immediately. To accommodate an immediate termination, the University provides Separation Pay for eligible employees as outlined in this policy.

Individuals and Entities Affected

All campuses, colleges, schools, departments, offices, and units of Purdue University.

All employees in eligible appointment types.

Exclusions

The following appointment types and situations are not eligible for Separation Pay:

Tenured and tenure-track faculty, clinical and professional faculty, and research faculty
Undergraduate and graduate student staff
Temporary employees
Limited-term lecturers
Postdoctoral researchers, clinical residents, and clinical interns
Employees terminated by the University in accordance with the policy on Reduction in Workforce (VI.F.2)
Employees with less than 90 days of employment with the University
Employees terminated for serious misconduct
Employees terminated because they have exhausted all leaves available to them
Employees terminated for job abandonment
Employees whose contracts expire and are not renewed

Tenured faculty who also hold a non-faculty appointment are not eligible for Separation Pay when the non-faculty appointment ends.

Responsibilities

Supervisors/Unit Head

Consult with Human Resources when contemplating the need to terminate an employee.
Upon determining that the employment relationship should be terminated immediately, conduct a termination meeting with the employee; provide a written notice of termination that specifies whether they are eligible for Separation Pay.
Arrange for the removal of the employee’s personal items from the workplace.

Terminated Employees

Upon notice of termination, immediately leave the University premises.
Promptly return any University property.

Definitions

All defined terms are capitalized throughout the document. Refer to the central Policy Glossary for additional defined terms.

Separation Pay
A payment equal to two weeks of pay for employees in positions that are non-exempt (typically paid every two weeks) or half of one month’s salary for employees in positions that are exempt (typically paid monthly).

Refer to the policies on Terms and Conditions of Employment of Staff (VI.F.5) and Terms and Conditions of Employment of Lecturers (VI.F.4) for definitions of the eligible appointment types listed in this policy.

Website Address for This Policy

www.purdue.edu/vpec/policies/human-resources/vif1

History and Updates

March 1, 2025: Added Executive staff to list of eligible appointment types and updated the names of other types. Updated the Exclusions section to clarify that appointments not explicitly included are excluded. Added definition of Separation Pay.

November 18, 2011: Policy number changed to VI.F.1 (formerly IV.14.1).

October 11, 2006: Version date.

May 1, 2002: This policy amends section 8B of Executive Memorandum No. B-55 and pertinent sections of Business Office Memorandum No. 142.

Appendix

There are no appendices to this policy.

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