VIEWS: 2,602 PAGES: 5 CATEGORY: Employment Policies and Procedures POSTED ON: 10/27/2009
This is a policy a company can use to establish the terms of employee severance and termination. This policy outlines the procedure used to determine whether employee severance should be granted. Among other factors, the company considers the duration of employment, the amount of severance pay, and severance pay for tenured employees. This policy can be used by small businesses or other entities that want to establish a consistent and uniform severance policy for their employees.
This is a policy a company can use to establish the terms of employee severance and termination. This policy outlines the procedure used to determine whether employee severance should be granted. Among other factors, the company considers the duration of employment, the amount of severance pay, and severance pay for tenured employees. This policy can be used by small businesses or other entities that want to establish a consistent and uniform severance policy for their employees. SEVERANCE POLICY I. Scope of Policy This Severance Policy (the “Policy”) applies to: (1) ___ [COMPANY NAME] and its wholly- owned subsidiaries and affiliates; (2) any other entity or organization in which ___ [COMPANY NAME] owns a direct or indirect equity interest of ____ percent (___%) or more; and (3) any organization or company in which ___ [COMPANY NAME] or an affiliate either manages or controls the day-to-day operations of the organization or company (each a “___ [COMPANY NAME] entity”), and all employees, contractors and temporary workers of any ___ [COMPANY NAME] entity. All such references to ___ [COMPANY NAME] shall hereinafter be referred to as “the Company.” II. Purpose The purpose of this Policy is to: A. To ensure Company’s compliance with any applicable collective bargaining agreement provisions related to severance; B. To provide severance pay appropriate to the tenure of the departing employee; and C. To communicate to staff Company’s basic severance procedures. III. Policy It is the policy of Company that severance packages are equitable across-the-board for all employees. IV. Procedure A. In order to promote this Policy, Company will establish rules and regulations to be followed by all stakeholders. B. Company will increase awareness of this Policy through the use of regular communication, training, and education. C. Company will determine employee severance in accordance with the following criteria: 1. Employees who have been employed continuously for ____ (__) months or longer, and who are not separated from employment due to unacceptable performance or noncompliance with the requirements of Company policies, will receive severance pay. © Copyright 2013 Docstoc Inc. 2 2. Severance pay will be calculated at the rate of one week’s salary for each year of service after ______ (__) years of service have been provided. 3. Employees who have performed for longer than _____ years, but less than ____ (__) years will receive severance pay calculated at the rate of two weeks’ salary for each year of service. 4. Employees with tenure longer than ___ years will not receive severance pay. D. Company shall pay severance pay in the same manner and at the same intervals as the payroll cycle applicable to employee immediately prior to the date of separation. E. Company will address all disputes related to severance amounts and payment methods in a timely and fair manner. 1. Employees are required to report disputes or issues with severance immediately, but in no event later than ___ business days following the date they were first aware of the issue(s). Disputes and problems should be reported to the Human Resources Department, which may direct the employee to the proper personnel in the payroll department. 2. The appropriate representative will promptly investigate the employee’s claim(s) and will provide the separated employee with a response in a timely manner. 3. If an error has occurred, the appropriate representative will take steps to correct it in a timely manner. 4. The resolution of all severance payment issues will be documented and placed in the separated employee’s records, with a copy provided to the separated employee. F. Company may, in certain instances, deduct amounts from separated employee’s severance pay. The following list is inclusive of some such deductions, but may not be exhaustive of all potential deductions. Deductions may be based on information provided in a Termination Certification signed by the employee and a Company representative. 1. Amounts owing for Company property that is not returned; 2. Any outstanding loan amounts due to Company from employee; 3. Items that may be considered when deductions are being determined are provided in the chart below, which is inclusive, but not exhaustive. © Copyright 2013 Docstoc Inc. 3 Material / Item / Documentation Items to be returned: Employee Identification Badge. Keys, Key Cards, or Access Cards, including desk and file cabinet keys. Company-owned software. Company-owned manuals, books, journals, or subscriptions. Company credit/charge card. Company cell phone and all accessories. Company computer equipment and all accessories. Pager. Company-owned home office equipment (fax, scanner, etc.) Company-issued uniforms. Expense reports (must be submitted within ___ (__) days). Reimbursement of relocation or other sign-on bonus (prorated) (must be submitted within ____ days). Passwords to Company systems provided to immediate supervisor. Company vehicle. Relinquishment of corporate housing (must vacate within ____ days). Repayment of any amounts advanced to employee (must be submitted within ____ days). Parking structure access card(s). Company-sponsored gym membership cards and/or other Company-sponsored retail shopping discount cards. © Copyright 2013 Docstoc Inc. 4
Pages to are hidden for
"Severance Policy"Please download to view full document