Separation Pay (VI.F.1)

Volume VI: Human Resources
Chapter F: Terms and Conditions of Employment
Issuing Office: Human Resource Services
Responsible Officer: Executive VP & Treasurer
Responsible Office: Human Resources
Originally Issued: May 1, 2002
Most Recently Revised: November 18, 2011

TABLE OF CONTENTS

Statement of Policy
Reason for Policy
Who Should Know This Policy
Related Documents
Contacts
Definitions
Exclusions
Procedures
Special Situations
History

STATEMENT OF POLICY

Purdue University provides separation pay to eligible staff members whose employment is terminated by the University. Administrative and professional staff, clerical and service staff, and continuing lecturer staff who have been employed by the University for more than 90 consecutive calendar days immediately prior to being terminated by the University will receive separation pay. Staff members who resign in lieu of being terminated by the University will receive separation pay if they meet all other eligibility requirements for separation pay as outlined in this policy.

Receipt of separation pay does not extend the employee's term of employment or benefits coverage period.

REASON FOR POLICY

In situations when Purdue terminates a staff member's 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 staff members as identified in the Statement of Policy.

WHO SHOULD KNOW THIS POLICY

• President
• Provost
• Chancellors
• Vice Presidents
• Deans
• Directors/Department Heads/Chairs
• Business Office Staff
• Human Resources Staff
• Administrative and Professional Staff
• Clerical and Service Staff
• Continuing Lecturers
• Supervisors

RELATED DOCUMENTS

• Executive Memorandum No. B-55:
  Terms and Conditions of Employment of Administrative and Professional Staff
• Executive Memorandum No. C-48:
  Terms and Conditions of Employment of Lecturers
• Business Office Memorandum No. 142:
  Termination of Employment of Members of Clerical and Service Staff

CONTACTS

Policy Clarification:

West Lafayette Campus --

• Human Resource Services -- Employee Relations Team (765) 494-1679
• Human Resources Manager for Advancement (765) 494-0542
• Human Resources and Administrative Manager for IT (765) 494-6116
• Housing and Food Services Human Resources Team (765) 494-9418
• Physical Facilities Human Resources Team (765) 494-1421
• Human Resources Manager for Intercollegiate Athletics (765) 494-7389

Calumet Campus Human Resources Department (219) 989-2254

Fort Wayne Campus Human Resources Department (260) 481-6677

North Central Campus Human Resources Department (219) 785-5300

Special Situations/Exceptions:

All Campuses -- Director of Human Resource Services (765) 494-7395

DEFINITIONS

EXCLUSIONS

This policy does not cover:

• Graduate student staff members
• Staff who the University terminates due to a reduction-in-workforce
  (Refer to Executive Memorandum No. C-9.)
• Clerical and service staff members in their provisional period of employment
  (See Business Office Memorandum No. 167.)
• Staff who are terminated for serious misconduct
• Staff who are terminated because they have exhausted all leaves available to them
• Staff whose contracts expire and are not renewed

PROCEDURES

When supervisors and department heads anticipate the need to terminate a staff member's employment, they must first consult with Human Resource Services.

If, after this consultation, it is determined that the employment relationship should be terminated immediately, then the supervisor should conduct a termination meeting with the staff member. During this meeting, the supervisor will explain to the staff member that the University is terminating the staff member's Purdue employment effective immediately.

During this meeting, the supervisor should inform the employee of the following:

• Termination is effective as of the date of the meeting.
• How much, if any, unused personal holiday (biweekly employees only) and unused vacation the staff member has accumulated.
• His or her final paycheck will include separation pay plus payment for any unused personal holiday or vacation. The check will be mailed on the next regular payday for the employee's staff classification.
• The employee should contact Staff Benefits about retirement information.
• Group medical coverage terminates as of the date employment terminates (the date of the meeting). The employee will receive information about COBRA coverage by mail.
• Additionally, the supervisor should complete these tasks during the termination meeting:
• Secure or arrange the return of any keys, tools, clothing, books, parking permit, staff identification, and other University property that has been assigned to the employee.
• Obtain a forwarding address for use in sending the year-end Tax Form W-2 and any other necessary mailings.
• Arrange for removal of the employee's personal items from the workplace.
• At the conclusion of the meeting, the employee should immediately leave University premises.
• Following the meeting, the supervisor should complete all needed forms, such as a payroll change form or a time slip and a Form 4.

SPECIAL SITUATIONS

Any deviation from this separation pay policy requires approval by the president, the executive vice president and treasurer, the provost, a chancellor, or the director of Intercollegiate Athletics, or their designees in consultation with the director of Human Resource Services.

HISTORY

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

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