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Policy Index
THE UNIVERSITY OF CHICAGO
PERSONNEL POLICY GUIDELINES
Subject: Layoff
Section: U207
Date: December 10, 2008
Prior Version Date(s): May 17, 2004; November 6, 1991; February 25, 1986
| Purpose: |
To provide guidelines to units which must reduce regular staff employees through layoffs due to reorganization, operational changes or financial constraints. The layoff process should not be used when corrective action or termination for cause are most appropriate.
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| Policy: |
When it becomes necessary to reduce staff through layoffs, reductions will be made in view of the needs of the unit. For purposes of this policy, a layoff consists of an involuntary loss of employment due to organizational restructuring, position elimination, or downsizing.
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| Guidelines: |
- Unit management must carefully review every layoff before implementation. Unit management must discuss layoffs with Employee Labor Relations (E/LR) and obtain E/LR's approval prior to notifying affected employees. As part of this process management should make reasonable efforts to determine if layoff can be avoided and existing staff employees can remain employed within the impacted unit.
- Units are responsible for assessing the feasibility of avoiding layoffs, selecting each position to be affected by a staff reduction and providing layoff justification to E/LR via the lay-off justification form.
- When feasible, non-benefits-eligible staff employees will be considered first for layoff.
- Regular staff employees will be given advance written notice of an impending layoff (with copies to E/LR). A unit may provide pay in lieu of having a staff employee work through a notice period. Notice periods are as follows:
- For staff employees paid monthly - at least one (1) month advance notice.
- For staff employees paid biweekly - at least two (2) weeks advance notice.
A staff employee scheduled for layoff should be given reasonable time off to seek another position and conduct scheduled interviews during his/her layoff notice periods.
- Subject to approval by E/LR, the unit may offer a one-time service based severance to regular staff employees who have completed five (5) continuous years of service with the University. If a unit elects to make a severance payout, eligible employees will receive up to one (1) week of base pay for every completed year of service, not to exceed 26 weeks, via a single, lump-sum payment. To receive severance pay under this policy, the staff employee must sign a separation agreement prepared and approved by E/LR. The separation agreement will include a waiver and release of legal claims against the University.
Employees receiving severance pay will be ineligible to be employed by the University until their severance period has lapsed.
- Subject to approval by E/LR, the unit may offer outplacement services as part of the separation agreement. If the unit chooses to offer outplacement services, this matter should be discussed with E/LR. Cost for outplacement services will be bourn by the unit.
- Under COBRA, a laid-off staff employee is entitled to continue his/her health and dental insurance for eighteen (18) months.
As a laid-off employee, the first three (3) months will be at the employee's current rate. The remaining fifteen (15) months will be at the full COBRA rate.
- The University will not contest an unemployment insurance claim for a staff employee who is terminated through the layoff process. Severance payments will be reported to unemployment and may affect payment of unemployment benefits.
- A regular staff employee returning to work from layoff status will have his/her University service bridged if he/she returns to University employment within twelve (12) months of being laid-off, provided more than one (1) year of University service has been completed
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| Cross reference: |
U208 Termination of Employment, U309 Performance Planning and Feedback, and U703 Progressive Corrective Action.
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| Employees represented by a bargaining unit may be governed by the appropriate bargaining unit agreement. |
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