Severance Policy

Responsible Unit: Human Resources | Executive lead: CHRO 
Created: 10/20/2018 | Reviewed/Revised: 03/28/2023 | Effective: 03/28/2023
Compliance: NWCCU 2.F.1 
Approving Body: PAC | Classification: Institution-wide 

Policy:  
In certain situations, it is appropriate to offer a discharged employee a severance agreement. Under a severance agreement, PNWU will offer an extension of salary and some benefits beyond which the employee would normally be entitled. The agreement is given in return for a waiver of his/her rights to take future action against PNWU and its officers, directors, employees, and other parties.  
 
For any employee age 40 or older, the agreement must advise the affected individual of his/her right to seek legal counsel. An agreement for an individual age 40 or older (rather than a group or class of employees) must advise (verbally and in writing) that the individual has twenty-one (21) days to execute the agreement and seven (7) days after executing the agreement to revoke it.  
 
During a Reduction in Force (RIF), when an agreement is being offered to a group (more than two employees) or class of employees, the period of time to execute the agreement becomes forty-five (45) days, plus seven (7) days to revoke the agreement after executing it. The affected employees must be given the ages (not names) of all similarly situated employees, as well as the ages of the remaining employees. The list must be provided at the time the severance agreement is presented, and prior to their deciding to waive their rights under the Age Discrimination in Employment Act (ADEA).  
 
During times of organizational review PNWU may alter, upgrade or require skillsets not present in the then current incumbent.  In such cases, the affected person may apply for another position within the University for which the person is qualified and if offered must accept the position at the salary offered. If the employee is offered such a position and declines, there will be no severance.  In the event no such position is available, the affected employee may qualify as a severed employee based on the recommendation of the chief human resources officer and with the approval of the president and be eligible for a severance per the terms below.  Under no circumstance does this paragraph imply a promise to find an alternative position or the offering of a severance.  This paragraph is non-binding and non-precedent setting and may be withdrawn at any time by recommendation of the chief human resources officer and approval by the president. (See Note 4 below)   
 
All agreements must be prepared and reviewed by the chief human resources officer and approved by the president. 
In most situations, it is recommended that the severed employee be provided with a minimum of two (2) weeks’ notice or pay in lieu of notice, plus a standard offering in accordance with the standard schedule guidelines listed below:  

Employee Category Weeks per Year of Service Up to: Maximum Up to: 
(1) Executive/chief 2 weeks per year of service 26 weeks 
(2) Executive directors, directors, or department head/chair 2 weeks per year of service 20 weeks 
(3) Other 1 week per year of service   12 weeks 

(4) For employees with no alternative position in the organization and with greater than ten years of service, and above age 60, the above Weeks per Year of Service may be adjusted in recognition of the staff member’s long-term commitment to PNWU.  The final determination of the appropriate severance will be based on the recommendation of the chief human resources officer and approval by the president. 

Definitions: 
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Procedure: 
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Related documents: 
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Policy Resources

For assistance with policies and procedures contact:

Lori Fulton
lfulton@pnwu.edu