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UNC PIM 19 EMPLOYMENT - Reduction in Force
Guidelines DATED: February
10, 2009 Category:
Administration Contact:
Associate Vice Chancellor for Human Resources – ext. 7-4269. 1. Purpose The reduction in force (RIF) procedure for staff
employees provides equitable treatment for any separation action resulting from
circumstances when a 2.
Covered Employees This policy applies to full and part time employees
subject to the State Personnel Act (SPA) who hold permanent appointments,
employees 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 separated without
following the As a matter of course, no employee or supervisor has
authority to make any binding oral promises, representations, commitments or
assurances regarding employment status or security 3.
Procedure 3.1. Justification for a reduction in force. A RIF may be implemented under the following
circumstances: reorganization of
positions within a unit which materially changes the nature of one or more
positions; abolishment of a filled
position; material change in duties assigned to a position to the extent that
the incumbent does not qualify for the revised responsibilities or that the
resulting reclassification is such that the incumbent is not reasonably
considered a candidate for the new position; shortage of work; cancellation or
termination of a grant or contract; or, shortage of funds. A reduction in force may not be used to
separate an employee for unsatisfactory performance, unacceptable conduct, or
other issues that should be addressed through the disciplinary process. Prior to requesting that a specific position
be eliminated or an employee be separated, a comparative analysis, performed in
accordance with 3.4, below, must be completed. 3.2. Identifying Boundaries. The boundaries for conducting a comparative analysis
on what positions are being considered for a 3.3. Identifying Positions For Separation Due to Reduction
In Force. To determine which position(s)
are subject to a 3.3.1.
determination of the number of
positions which must be abolished to meet the established goal; 3.3.2. the
feasibility of eliminating entire programs or parts of programs; 3.3.3. identification
of areas where the number of positions must be reduced or eliminated; and 3.3.4. identification
of the classification (banded classification and competency level) of positions
to be eliminated and a determination of whether sufficiently similar vacant
positions within the university exist to utilize employees who would otherwise
be separated. 3.4. Comparative Analysis to Identify
Employees for Separation due to Reduction In Force. After specific positions are identified, comparisons
between employees with the same or related[1]
career band classifications and competencies are made. The Human Resources Department is available
to assist in the completion of such comparative analysis. Assistance may be obtained by contacting the
Director of Compensation and Position Management. Attached is a worksheet for doing the comparative analysis. The following criteria must be used:
3.4.1. Type of appointment. Temporary
employees in the same or related career band classifications and competencies within
the defined boundary must be terminated before any employee with a probationary
or permanent appointment, provided that a probationary or permanent employee
can effectively perform the temporary employee’s responsibilities and job tasks. Employees with probationary appointments as
well as trainees and apprentices with less than six months of service must be
terminated before any employee in the same or related career band classification
and competencies with a permanent appointment within the defined boundary,
provided that the employee with a permanent appointment can effectively perform
the responsibilities and job tasks of the probationary employee, trainee or
apprentice. 3.4.2 Relative
efficiency and performance. Reduction in force often results in fewer
employees to perform the same work tasks. The relative skills, knowledge, and
productivity of employees should be considered and personnel files and
performance management evaluations should be reviewed and compared. Those whose evaluations consistently show
above "Good" will be given preference over those whose performance is
“Good”, "Below Good", "Unsatisfactory” or those with active disciplinary
action(s). 3.4.3. Length
of service. Total length of service
with state government will be considered in determining which employees are to
be separated and may become a differentiating factor in the separation
decision, particularly in instances where other retention criteria are
substantially equivalent. In determining the length of service, an eligible
veteran shall be accorded one year of state service for each year or fraction
thereof of military service, up to a maximum of five (5) years credit. 3.4.4. Diversity. An analysis of the actual or potential
adverse impact on the diversity of
the work force. 3.5. Documentation
and Review. After conducting the
comparative analysis and identifying the person(s) whose employment may be
terminated, the head of the relevant unit, office or department records the
steps taken to reach the decision, receives concurrence of the comparative analysis
from his or her respective vice chancellor, and forwards a confidential copy of
the documentation (including the comparative analysis worksheet) to the AVC of
Human Resources (RIF Recommendation Transmittal to Human Resources). The AVC of Human Resources then conducts an "adverse
impact" analysis to determine consequences of the decision on the
University's Affirmative Action goals. If there will be a negative impact, the AVC
of Human Resources discusses with the department head possible approaches that
will compensate for the action to be taken while assuring future progress
towards goals.
3.6. The
AVC of Human Resources reviews the entire process used to reach the selection
of the person(s) to be separated to determine whether the process complies with
this PIM 19. If the AVC of Human Resources determines that this PIM 19 was not
followed, the AVC of Human Resources will explain what must be done to correct
the process by a confidential form to the department head. 4.
Notice to
Affected Employees. In order to assure compliance with this policy,
written intent of a separation due to a RIF, and the results of the comparative
analysis, should be submitted to the AVC of Human Resources at least ten (10)
working days prior to the desired notice to the affected employee(s). Affected employees will be notified by the AVC of
Human Resources as soon as possible after approval of the decision by the AVC
of Human Resources, and must be given a minimum termination notice of thirty (30)
calendar days with full pay. Affected
employees are not to be notified of the intended separation prior to coordination
with, and approval by, the AVC of Human Resources. Separated employees will be notified in
writing by the AVC of Human Resources only. 4.1. Meeting
with Employee. Unless the affected
employee declines to participate in the meeting, the AVC of Human Resources and
the appropriate office, unit or department head must conduct an individual
meeting with the employee to explain the decision process. During this meeting,
related issues, including priority reemployment consideration, severance salary
continuation, retirement options, and other rights of the employee will be
covered. 4.2. Termination
Letter. At the conclusion of the
meeting, or by mail to the last known mailing address of any employee refusing
to participate in the meeting, the AVC of Human Resources will provide a letter
to the employee(s) being terminated.
This letter will contain the following information: 4.2.1. the reason for the reduction in force; 4.2.2. the effective date of the
reduction in force (at least 30 calendar days following the notification date); 4.2.3. direction
to contact the Benefits Manager to obtain necessary information on retirement
system membership and benefit options including continuation of medical
insurance (COBRA), Unemployment Insurance benefits eligibility and Severance
Salary Continuation;
4.2.4. direction
to contact the Director of Staff Employment for information on the following: a.
The University's
policy on priority reemployment; b.
Completion of
necessary priority reemployment application forms; and
c.
The availability
of aid in seeking other employment. 4.2.5. direction
to contact the Director of Employee Relations, Training and Compliance for
information on the right of permanent employees to appeal the reduction in
force action through the Staff Grievance Procedure (on the bases as set forth
in Section 10 of this PIM). 4.3. Employees
who decline reemployment assistance from the Office of State Personnel will be
asked to sign a statement indicating the employee is not interested in
receiving reemployment assistance. A copy of this statement will be forwarded
to the Office of State Personnel. 5. Priority
Reemployment Consideration Permanent career state employees separated under reduction in force
are eligible to receive priority reemployment consideration for a period of
twelve months from the date of notification. Within the University, the
employee will be offered any available vacant position in the same banded
classification at the same competency level or lower as that held at the time
of notification, or for positions in a different banded classification with the
same or lower journey market reference rate as that held at the time of
notification, provided the employee meets the qualifications for the position
and can perform the job in a reasonable length of time, including normal
orientation and training given to any new employee. Note, however that other current career state
employees are also eligible for priority reemployment and current state
employees who are more qualified may be hired in lieu of an employee subject to
reduction in force.
5.1. It
is the intent of the University Human Resources Department to place any
affected employee in a similar vacant position, as described above, prior to
the effective date of their separation, to the extent possible, in order for
the employee to continue his or her employment with the university. Employees who decline interviews or offers
of employment for positions at the same or higher classification within 35
miles of the original work station are no longer eligible for priority
reemployment consideration. 5.2. Affected
employees should submit a current application/résumé within 30 (thirty) days of
notification in order to be considered for priority reemployment. An employee who does not submit such
documentation forfeits his or her right to priority reemployment
consideration. The "Policy on
Priority Consideration" is administered by the Human Resources Department
(Director of Staff Employment). Further
information on Priority Reemployment Consideration is located at http://www.osp.state.nc.us/manuals/manual99/RIF Priority.doc.
6.
Severance Salary Continuation A permanent, full-time or part-time (20 hours per week
and over) employee who does not obtain another permanent job as a state
employee by the effective date of the reduction in force may be eligible for
severance salary continuation provided reemployment is not available. 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 due to retirement. Years of service, age, reemployment,
retirement, and funding as directed by the Office of State Budget and
Management affect severance. Severance salary
continuation is administered by the University Benefits Department in Human
Resources and employees subject to 7. Leave Balances 7.1. Vacation
Leave. Employees will be paid a lump
sum for the balance of their vacation leave at the time of separation not to
exceed 240 hours. If an employee has
over 240 hours of vacation leave at the effected date of separation due to 7.2. Sick Leave. An employee’s sick leave balance at the time
of separation due to 8. Discontinued
Service Retirement RIF employees with: (a) 25 or more years of creditable
retirement service, and who are age 55 or older (no reduction in benefits); or (b)
who have 20 or more years of creditable retirement service, and who are age 50
or older (benefits reduced by ¼ of 1 percent for each month under age 55),
might be eligible for discontinued service retirement. Employees should contact the Benefits Director
in the Human Resources Department to obtain more information about their
specific retirement eligibility. 9. Health
Insurance Employees with at least one year of state service who
are participating in the State Health Plan at the time of separation due to RIF
will continue to receive the university’s contribution for their individual
health insurance coverage for one year from the date of separation or until
reemployed in another permanent state position, whichever is sooner. Dependent coverage is not included but may
be purchased by the employee. 10. Appeal
Rights A permanent state employee who is separated due to reduction in force may appeal such action if: 10.1. It is alleged that the decision is because of illegal discrimination, or in retaliation for the employee’s opposition to alleged discrimination, on account of the employee’s age, sex, race, color, national origin, religion, creed, political affiliation, sexual orientation, or disability. Such an appeal may be made either through the University’s grievance procedure or may be filed directly with the Office of Administrative Hearings, at the choice of the employee, except that allegations of discrimination on account of sexual orientation may be appealed only through the University’s grievance procedure. 10.2. Denial of veteran’s preference granted in accordance with Article 13, G.S. 126 is alleged in initial State employment or in connection with a reduction in force, for an eligible veteran as defined by G.S. 126-81. Forms
References
State personnel Manual,
Section 11, Subject: Severance Salary Continuation,
www.osp.state.nc.us/manuals/manual99/seversal.doc
State Personnel Manual, Section
2, Subject: Priority Consideration for Reduction-in-Force
Employees www.osp.state.nc.us/manuals/manual99/RIF%20Priority.doc
[1] The general test for whether another classification is “related” is whether a reasonable competency transfer exists for the incumbents. Lower level competencies within the same banded class would be considered a “related” classification. |