Reduction in Force
REG 05.65.1
Authority: Vice Chancellor for Finance and Business
History: First Issued: October 1, 2002.
Contact Info: Assistant Director for Employment Relations (919-515-6575).
1. Purpose
The reduction in force procedure for staff employees provides equitable treatment
for the layoff of staff employees when reduction in force becomes necessary.
A reduction in force decision should be reached only after measures such as
a hiring freeze on vacant positions, limits on purchasing and travel, retirement
options, and job sharing and work schedule alternatives have been considered.
2. Covered Employees
The policy applies to SPA employees (full-time and part-time) holding permanent
appointments, employees and apprentices with trainee appointments who have
completed six months of service, and employees who attained permanent status
prior to entering a trainee appointment. Temporary employees or employees
with time-limited permanent appointments may be laid off without following
the reduction in force procedures.
A reduction in force or layoff might become necessary because of lack of
work, lack of funds, abolishment of a position, or other material change in
duties or organization.
3. Procedures
3.1. Determining Priorities for Reductions. A reduction in force decision requires
a thorough evaluation of the need for particular positions and the relative
value of specific employees so that the university can provide the highest
level of service possible with a reduced work force. Determining the retention
or separation of a particular employee should include an evaluation of the
relative skills, knowledge, and productivity of the employee in comparison
to necessary services. Length of service and other factors must be considered
but may receive less weight in the determination. The department determines
priority for reduction in force within the following guidelines:
3.1.1. Temporary employees in the same or related classifications must be
terminated before any employee with a probationary or permanent appointment,
provided that a probationary or permanent employee can perform the temporary
employee's tasks.
3.1.2. Employees with probationary appointments as well as trainees and apprentices
with less than six months' service must be terminated before any employee
in the same or a related classification with a permanent appointment,
provided that the employee can perform the tasks of the probationary employee,
trainee, or apprentice.
3.1.3. Reduction in force of employees should be based on the following factors:
3.1.3a. University needs. Determine which positions are most vital to the
department in the delivery of services.
3.1.3b. Relative skills, knowledge, and productivity of employees. Personnel
files and performance appraisals should be reviewed.
3.1.3c. Length of service of employees.
3.1.4. In accordance with federal guidelines affecting equal employment opportunity/affirmative
action, any application of the reduction in force policy must be reviewed
by the affected department(s) and Human Resources to determine its impact
on the university's affirmative action goals.
3.2. Approval
At least five weeks prior to the actual separation of any employee for
purposes of reduction in force, the director or department head submits
to a written report indicating the position numbers, class titles, names
of employees to be terminated, the reason for the reduction in force, and
an assessment of the reduction in force's impact on the department's EEO
profile.
3.3. Briefing Affecting Employees
Before a reduction in force occurs, the director or department head provides
the following information, in writing, to the employee(s) being laid off:
3.3.1. The reason for the reduction in force.
3.3.2. The effective date of the reduction in force (at least 30 days following
notification date).
3.3.3. Direction to contact Benefits to obtain necessary information on benefits
options.
3.3.4. Direction to contact Human Resources for information on the following:
3.3.4a. The university's policy on priority re-employment.
3.3.4b. Completion of necessary application forms.
3.3.4c. The availability of aid in seeking other employment.
3.3.4d. Eligibility to apply for Unemployment Insurance benefits.
3.3.5. The amount of severance pay due, if any.
3.3.6. The right of permanent employees to appeal the reduction in force through
the Staff Employee Grievance and Appeal Procedure.
3.4. Leave and Salary Increases
Employees are paid in a lump sum for accumulated vacation leave. Accumulated
sick leave at the time of separation is reinstated if reemployment occurs
within five years.
3.5. Discontinued Service
Reduced-in-force employees with 25 or more years of creditable retirement
service, and age 55 or older (no reduction in benefits) with 20 or more
years of creditable retirement service, and age 50 or older (benefits reduced
by 1/4 of 1 percent for each month under age 55) might be eligible for discontinued
service retirement.
3.6. Severance Pay
Severance pay is paid to an eligible employee who does not obtain permanent
employment in state government by the effective date of the reduction in
force. Payment is based on total state service supplemented by an age factor.
Severance pay does not apply to employees who are probationary; who are
separated at the end of time-limited appointments; whose reduction in force
is temporary; or who are separated on early, service, or disability retirement.
3.7. Amount and Method of Payment
Severance salary is based on total state service, salary at separation,
and the employee's age at separation.
Years of Service Payment
Less than 1 year 2 weeks base salary
1 but less than 5 years 1 month base salary
5 but less than 10 years 2 months base salary
10 but less than 20 years 3 months base salary
20 or more years 4 months base salary
3.8. Age Adjustment Factor
Employees receive an age adjustment of 2.5 percent of annual base salary
for each full year over 39 years of age. The total age adjustment factor
cannot exceed 22 years (to age 61) and is limited to the total service payment.
3.9. Method of Payment
The total amount of severance salary payable--including any age adjustment
amount--is paid on a pay period basis for the time indicated under "Years
of Service."
3.10. Priority Reemployment Consideration
Priority reemployment consideration is provided to employees who have
met service requirements and are separated: (1) for reasons other than
just cause and (2) due to shortage of funds or work, abolishment of a
position, or (3) due to changes in duties or organization.
Employees must claim priority reemployment consideration by the date
of separation by notifying Human Resources or priority is forfeited. Employees
must also complete applications for state government and university employment.
Employees separated through Reduction in Force receive priority reemployment
consideration for twelve months from date of separation. Employees separated
from permanent part-time positions have priority to part-time positions
with the same number of hours only.
3.11. University Employees
An employee separated from the university is offered any available vacant
position at a salary grade equal or below that held before separation provided
that the employee meets the qualifications for the position and could perform
the job in a reasonable period of time, including normal orientation and
training. Exception: Another state employee who is more qualified may be
hired in lieu of a RIF.
3.12. Other State Agency Employees
Employees separated from other state agencies or institutions shall be
interviewed and if qualified, shall be offered a position if at the same
level or below. They will be offered the position before employing anyone
who is not a permanent state employee.
3.13. Intent
Priority reemployment consideration is intended to provide return to a position
at the same salary grade as that held at separation. Acceptance of a position
at a lower salary grade does not affect priority. The decline of an offer to
a lower salary grade does not affect priority. Employees who decline interviews
or offers of employment for positions at the same or a higher salary grade within
35 miles of the original work station lose priority.
3.14. Qualifications
The employee must possess at least the minimum education and experience requirements
or their equivalent as set forth in classification specifications for the position
for which they request priority.
