HUMAN RESOURCES TERMINATION POLICY AND PROCEDURE

1. POLICY
1.1 Employment at our Organization is under an employment-at-will policy, so each employee
serves at the pleasure or will of the Organization for as long as the employee’s services and
performance are satisfactory and are needed by the Organization.
1.2 The employment of any employee may be terminated by the Organization at any time for
any reason.

2. SCOPE
This policy and procedure applies to all employees of the Organization except t
contracts that include termination procedures that differ from the terms herein contained.

3. ACCOUNTABILITY
3. 1 A l l m a n ag e r s a r e a cc ou n t ab l e f or f ul f i l l i n g t he t e r m s of t hi s po l i cy a nd p r o ce du r e w
terminating an employee.
3.2 Human Resources is accountable for processing all employee terminations and ensuring
that the proper procedures are followed and the proper documentation maintained to protect
both the employee and the Organization.

4. DEFINITIONS
4.1 Voluntary Termination—Termination that is initiated by the employee.
4 . 1 . 1 R e s i g n a t i o n — A n e m p l o y e e ’ s d e c i s i o n t
organization.
4.1.2 Retirement—upon reaching a certain age and qualifying for re
Security, and/or pension benefits, an employee ceases to be employed and uses these
programs for income.
4.2 Involuntary Termination—Termination that is initiated by the Organization.
4.2.1 Layoff—A temporary termination of employment usually involving more than
employee at a time.
4.2.2 Discharge for Cause—the Organization’s decision to terminate employment based
on some action of the employee.
4 . 2 . 3 R e d u c t i o n i n W o r k f o r c e — A r e d u c t i o n i n t h e n u
organization, a single location, a department, or a functional area. Generally, in
more than one employee at a time.
4.3 Termination in Good Standing—at the time of termination,
performance is rated as Good or better; there are no current Performance
p r o c e d u r e s t e p s ; a n d t h e e m p l o y e e i s n o t b e i n g t e r m
Organization’s terms of employment.

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 4.4 Termination Not in Good Standing—at the time of termination, the employee’
p e r f o r m a n c e i s r a t e d a s B e l o w A v e r a g e o r U n s a t i s f a c
Performance Improvement procedure steps.

5. FORMS
5.1 Employee Status Change
5.2 Exit Interview

6. PROCEDURE
6.1 When an employee is terminated for any reason, the employee’s manager completes an
Employee Status Change form, has it signed by the person to whom the manager r eport
and submits it to the Human Resources manager, along with a cover memo and all supporting
documentation.
6.2 The effective date of termination is the last day worked, or if the employee is on vacation
or not at work for any paid reason, the last day paid.
6.3 Reasons for Termination
6.3.1 Disability—An employee who is away from work due to a disability caused
nonwork-associated accident or illness is maintained on the payroll as an employee on a
medical or disability leave of absence until it is evident the employee can never return to
work or six (6) months pass, whichever occurs first.
6.3.1.1 At that time, the employee will be placed on permanent leave of absence for
up to another six (6) months.
6.3.1.2 If the employee is still unable to return to work, the employee’s employment
is terminated.
6.3.2 Non-return from Military Leave—Employees who do not return from military leave
as required are considered to be voluntary terminations.
6.3.3 Employees who voluntarily join the military service are considered to be voluntary
terminations.
6.3.4 Non-return from Leave of Absence—Employees who do not return from approved
l e a v e s o f a b s e n c e a s r e q u i r e d b y t h e i r l e a v e s a r e c
terminations.
6.3.5 Death—the term ination date f or deceased employees shall be the date of deat
Any expense reimbursement and wages due the employee at the time of the employee’s
death are paid to the legal heir of the deceased employee.
6.3.6 Performance Improvement Procedure—the termination is based on implementation
of the Organization’s Performance Improvement Procedure (see 7.2
violation of one of the Organization’s terms of employment (see 7.4).
6.3.7 Unable to Perform Job—the termination is due to the employee’s inability to perform
the essential functions of the job.
6.4 Termination of Benefits
6.4.1 All benefits terminate the effective date of employment termination. However, the
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 employee shall have insurance conversion rights as per federal and state law.
6 . 4 . 2 An y un u se d pa i d va ca t i o n, p e r so n al d a ys , a nd si c k d a ys a r e h a nd l e d a s pe r t
Time Away from Work Policy and Procedure (see 7.3).
6.5 Severance Pay
6.5.1 Any employee involuntarily terminated (layoffs excepted) who is in good standing
at the time of termination receives pay equal to one full pay period in lieu of notice.
6.5.2 An employee with at least six (6) months of service but less than five years (5) who
is involuntarily terminated (layoffs excepted) in good standing is paid an additional tw
(2) weeks severance pay in lieu of notice.
6.5.3 An employee with at least five (5) years who is involuntarily terminate
excepted) in good standing is paid an additional week severance pay in lieu of notice for
each year of service. Six (6) months or more in the same calendar year is considered a
year.
6.6 Organization Property
6.6.1 Money
6.6.1.1 If at the time of termination, the employee owes the Organization any money
such as loan repayment or advance repayment, that amount is subtracted from the
employee’s final pay.
6.6.1.2 If the final pay is not adequate for full recovery, a separate arrangement for
payment of the balance is made.
6.6.2 Property
6.6.2.1 If at the time of termination, the employee has possession of a
Organization’s property, that property is t o be returned in good condition at a tim
agreed by Human Resources.
6.6.2.2 If the property is not returned by the time established by Human Resources,
the value of the property may be deducted from the employee’s final pa
Organization may take other legal action.
6.6.3 Security
6.6.3.1 At the time of termination, the employee shall return all security items to the
Organization such as keys, badges, and identification cards.
6.6.3.2 If the security items are not returned by the time established
Resources, the Organization may take other legal action.
6.7 Exit Interviews
6.7.1 Human Resources conduct an exit interview with all terminating employees on their
last day of employment.
6.7.2 The results of that interview are documented and plac
employee’s personal file in the HR department.

7. REFERENCES
7.1 Benefits Policy and Procedure
7.2 Performance Improvement Policy and Procedure
7.3 Time Away from Work Policy and Procedure
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7.4 Terms of Employment Policy and Procedure