Department of Human Resources

Severance and Release

 

Purpose

Seton Hall University provides a severance program combining severance pay and benefits to provide economic support for eligible administrators and staff whose positions are eliminated or restructured. The severance program is designed to provide financial support during a period of employment transition.

Scope

This is a University wide policy that applies to full-time administrative and non-union staff employees, other than teaching faculty and professional librarians.
Union employees should consult their union contracts for information on layoffs.

Policy

The University will provide severance benefits as stated in this policy to full-time administrative and non-union staff employees, other than teaching faculty and professional librarians, of the University who are involuntarily separated from employment because of the elimination or restructuring of their position. Employees who resign or are terminated are not entitled to severance benefits under this policy. An employee who refuses an offer to transfer to a comparable position will not be eligible for severance payments. Such separations will be considered voluntary resignations. The University will attempt to provide reasonable notice under the circumstances. Administrative and non-union staff employees who are funded by federal, state, private, or agency grants and contracts are not eligible for the severance program. In order to receive any severance benefits, the separated employee must sign an appropriate release (attached).

Definitions

  1. Separation
    A separation is the involuntary cessation of an individual's employment effected by the University due to the elimination of that individual's position or duties, for reasons such as, but not limited to, lack of work, organizational change or a reduction in force.
  2. Resignation
    A resignation is the voluntary cessation of an individual’s employment effected by the individual. An administrative employee who intends to resign must give a minimum of thirty (30) days notice to his/her immediate supervisor and the Associate Vice President of Human Resources. A non-union staff employee who intends to resign must give a minimum of fourteen (14) days notice to his/her immediate supervisor and the Associate Vice President of Human Resources. A resignation must be in writing.
  3. Termination
    A termination is the involuntary cessation of an individual’s employment effected by the University for cause, as defined by the University, or without cause, at the discretion of the University. Cause may be defined as, but is not limited to, unsatisfactory performance, conduct detrimental to the University or its employees or otherwise inconsistent with the University’s mission. Individuals terminated for cause may not be reemployed by the University.

Procedures

1. Financial Separation Allowance and Execution of Release
An employee who is separated from the University will be paid through the last day actually worked and will receive payment for accrued, but unused, leave in accordance with University policy. In addition, the separated employee will receive separation benefits in accordance with the following schedule:

Length of Service
Severance Pay
Health Coverage Extension
Tuition Remission
Group life Insurance
3 months to 1 year
2 weeks
N/A Until the end of the current semester
N/A
1 to 3 years
3 weeks
3 months
Until the end of the current semester
3 months
3 or more years
1 week per full year of service weeks to a maximum of 26 weeks
6 months
Until the end of the current semester, plus the next semester
6 months

Separation allowances will be paid within 30 days of the University receiving the attached release, signed by the employee. All payments are subject to normal tax and other withholdings.

2. Group Health Insurance
A separated employee who was a participant in one of the University's group health insurance plans may elect COBRA to continue to participate in the plan for up to 18 months or until other health insurance coverage is obtained. Premium payments for COBRA will be paid by the University for duration noted in schedule. At the conclusion of the Health Coverage Extension, payments of COBRA premiums are the responsibility of the separated employee.

3. Group Life Insurance

A separated employee who was a participant in the University’s Basic Group Life Insurance Plan may continue coverage through the Conversion Privilege in accordance with the Group Life Insurance Policy. If coverage is converted, the University will reimburse the separated employee for premiums paid to the insurance carrier for the duration noted in the schedule above. The separated employee must provide proof of paid premiums when requesting reimbursement.

4. Outplacement Assistance
The University will provide outplacement assistance to a separated employee for up to four (4) months commencing from the date of separation. This outplacement assistance may be provided by the Department of Human Resources.

5. Tuition Remission
A separated employee and/or his/her eligible dependents who were enrolled as students at the University at the time the employee is separated may continue to receive tuition remission benefits in accordance with University policy for the period indicated in the schedule above.

6. Severance Costs
All severance payments, benefits and associated costs will be borne by the employing department.

7. Rehire
An employee who is rehired by the University and is later separated under this policy will be entitled to severance based on the date of rehire, not the date of original employment.

Disclaimer

This policy does not create a contract of employment or alter the at-will employment relationship between the University and its employees. Nothing contained in this policy shall limit the right of either the University or the employee to terminate the employment relationship at any time, with or without cause.

Approved

This policy was originally adopted by the Board of Regents in January 1997.
This revised policy was approved by the Board of Regents on February 13, 2009.

Effective Date

February 13, 2009
Responsibility for the interpretation and administration of this policy resides solely with the Department of Human Resources. The University reserves the right to amend or discontinue this policy at any time.

Effective Date

February 13, 2009

 
 
Contact Us

Department of Human Resources
(973) 761-9177
Fax (973) 761-9007
humanres@shu.edu
Martin House

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