Policy Statement
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Layoff, or the elimination of a position, can occur when there is a lack of available funding or work, a reduction in the size of the work force, reorganization or other changes in the workplace which impact staffing needs. When this occurs, affected employees are given a notice of layoff, or severance pay in lieu of notice
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Eligibility
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This policy applies to all regular, benefits–eligible employees.
Employees in union areas should consult their union contracts for details of layoff procedures. Temporary employees or employees with term appointments and interns are not covered by this policy.
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Management Planning
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Making the Decision
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Before a decision is made to eliminate a position(s), managers should thoroughly assess the unit's work and staffing needs and, if a layoff is anticipated, must consult with the office head and with Human Resources.
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Developing Staff Transition Plans
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Once the decision to lay off has been made, managers should develop a staff transition plan that provides an outline of activities for staff members whose positions will be eliminated.
Managers also should develop a similar transition schedule or plan for employees in the department whose jobs will be affected by the change. Human Resources will provide consulting and guidance to any manager who is responsible for planning and implementing a layoff.
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Criteria for Layoff
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Managers, in consultation with their administrative officer or office head, are responsible for determining which position(s) should be eliminated and the order of layoff of affected staff members. Selection of employees to be retained or separated will be based on departmental needs.
The criteria guiding these decisions may include but are not limited to:
- available funding
- required staffing levels
- retention of critical skills
- qualifications (including essential licenses and similar credentials)
- performance standards necessary to carry out the department's functions and program requirements
- University seniority will be a final determinant when all other criteria are equal
Managers should review these criteria in consultation with Human Resources to determine which criteria are most appropriate given the demands and needs of the department. Managers should also consult with the Vice Provost for Institutional Equity to insure that University–wide goals and objectives have not been adversely impacted or affected.
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Notification Of Layoff
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Informal Notification
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Managers should provide informal notification to affected employees of impending reductions in duty time or layoffs as soon as appropriate. Informal notification provides time for employees to begin to explore other employment opportunities at the University and elsewhere, and allows the supervisors to plan for the completion of work prior to the date of formal notification. Advance notification is particularly important in those areas where employees are funded through external sources, such as a research grant.
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Formal Notification
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In the event a position is terminated and no transfer opportunities are available, managers will provide employees with formal written notification of termination due to layoff prior to the start of the severance period.
Where possible, employees may have the option to work during the notice period and this time will be charged against severance. In situations where it is not appropriate to retain the employee on the payroll for the notice period, the employee will promptly receive a lump sum payment covering the balance of the separation period noted in the severance schedule.
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Letters of Notification
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Letters of formal notification should include the following information:
- reason for the layoff
- effective date of the layoff
- amount of severance pay for which the employee is eligible, including information regarding payment options
- information about payment of unused accrued vacation[1];
- information regarding the employee’s benefits upon termination which will be provided by the Office of Human Resources prior to termination (see 4.0.4 Benefits at Termination)
- a summary of any other appropriate details.
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Information and Resources
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Managers should provide information to the affected employees on the following resources, as appropriate, when presenting the notification letter:
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Notification And/Or Severance Pay
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Introduction
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Employees who will be terminated due to layoff are eligible for severance in accordance with Princeton University’s Layoff Policy. The purpose of the Layoff Policy is to recognize the service that affected employees have provided to the University and to provide some financial cushion when employment is terminated.
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Payment method
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Severance pay normally is made as a lump sum payment [2] based on the employee’s current base salary and is subject to all applicable withholding deductions.
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Severance Schedule
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The amount of severance for which an employee is eligible is determined according to the following schedule.
If an employee received severance from the University during a previous layoff, the employee’s years of service are based on the most recent date of hire during any subsequent layoff.
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YEARS OF SERVICE
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NUMBER OF MONTHS OF REGULAR BASE PAY
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1st year, incl. probationary pd. [3] |
1
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2nd and 3rd
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2
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4th and 5th
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3
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6th and 7th
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4
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8th and 10th
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5
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11th through 15th
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6
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16th through 20th
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8
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21st +
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12
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Repayment of Severance if Recalled or Rehired
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If an employee is recalled or rehired by the University into another regular position during the severance period, the employee will cease to receive severance payment as of the date of recall or rehire. If the employee received a lump sum severance payment, he or she will be required to reimburse the University those monies received for the unexpired severance period. (See: 4.2.5 Recall and Rehire.)
Laid off employees rehired by the University on a casual hourly basis (no benefits) are not required to return any severance payment.
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