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POLICY #8.3.4
SUBJECT: Severance Pay


The purpose of this Policy is to define University policy with respect to Severance Pay for non-instructional, salaried employees under regular University appointment and to designate the procedures for making such payment.




  1. Notice: Given by a written statement which is delivered in person, except that if the individual cannot be personally located at the usual place of University employment during assigned working hours, Notice may be given by mailing the statement to the employee at their last known address. If Notice is mailed, it will be sent by certified mail.
  2. Severance Pay: A payment made to an employee who is placed on layoff status without being given the required advance Notice of termination. Severance Pay does not constitute compensation, and where applicable will be paid in addition to accrued salary, wages, and unused vacation time.


  1. When it is necessary for the University to effect a reduction in work force (RIF), or to terminate an employee for reasons other than cause, each nonexempt staff member in non-probationary status who is to be laid off will ordinarily be given written Notice of termination at least two (2) calendar weeks before the effective date of such termination. For exempt staff personnel, the Notice will be given at least four (4) calendar weeks before the effective date of termination.
  2. If the required advance Notice is not given, or is given for a shorter period than provided under Section IV.A., Severance Pay will be given in lieu of Notice, and will be included in the final paycheck for the employee. The amount given as Severance Pay will be the amount represented by the daily base pay rate in effect for the employee during the period of the required Notice, multiplied by the number of working days for which the employee did not receive the required Notice.
  3. Eligibility
    1. An employee is not eligible for Severance Pay if (a) the effective date of termination occurs within the probationary period of employment, or (b) the termination is for cause.
    2. Severance Pay is not available to employees whose termination is voluntary.
  4. Severance Pay is not considered part of the regular rate used to compute overtime payments due upon termination, and cannot be used to reduce any other payments due to the employee, such as accrued overtime, and accrued but unused vacation time. Compensation shall not be paid for unused sick leave. Severance Pay will be considered for the purpose of FICA and income tax withholding, but will not be considered for the purpose of University benefits and does not extend the employment period beyond the effective date of termination.
  5. Temporary employees, hourly student employees, and hourly wage employees shall be given as much Notice as is reasonable, but no minimum time is required.




The responsible office for this Policy is the Vice President for Finance. For questions about this Policy, contact the Office of Human Resources.


Date Approved: June 11, 1990

Amended: September 23, 2005