Rev. 8/08

1. Policy
2. Definitions
   1. Continuous Service
   2. Equivalent Job
   3. One Week's Pay
3. Severance Payment Calculations and Methods of Payment
   1. Calculation
   2. Method of Payment
4. Limitations
   1. Layoff
   2. Previous Service Payment
   3. Exceptions
   4. Transfer
5. Reemployment

A.  POLICY

Career employees (excluding University of California faculty, trainees, apprentices, and term appointees) who are eligible for vacation and sick-leave credits and are laid off from employment for an indefinite period due to lack of work or lack of funds are eligible for severance payments in accordance with the following provisions.

Career employees who are on temporary work deferment leave, temporary reduction in time, or permanently reduced in time are not eligible for severance payments.

B.  DEFINITIONS

The following definitions apply for purposes of severance payments:

1.  Continuous Service

Service is continuous if an employee is on pay status each month without a break in service. A break in service occurs when there is a separation from Laboratory employment status.

1. Periods on an approved leave without pay for military service, illness, injury compensable by workers' compensation, assignment to another research organization at the direction of the Laboratory, or an approved leave without pay for any period of 30 calendar days or less are counted as periods of continuous service for the purposes of severance pay, as are periods on pay status before and after any other approved leave without pay.


2. Periods of employment before a break in service are not counted as periods of continuous service for purposes of severance pay.


3. Periods of employment as a student assistant, graduate student research assistant (GSRA), or other trainee positions are not counted as periods of continuous service for purposes of severance pay.  


4. Periods of employment on variable time (once called indeterminate time) are not counted as periods of continuous service for purposes of severance pay.


5. Time spent as a postdoctoral fellow is counted toward calculating severance payment if the postdoctoral fellow continued their employment in a career appointment without a break in service.


6. When a limited appointment has been designated as a career appointment after attaining 1,000 hours of qualifying service in any 12 consecutive months without a break in service of at least 120 consecutive calendar days, these hours on pay status will be counted for purposes of severance pay. Qualifying service includes all time on pay status in one or more limited appointments at the University.  However, only those hours worked at the Laboratory will be counted toward calculation of the severance payment.


7. Continuous service is reestablished when an employee is rehired from recall or preferential rehire status from the Laboratory.

2.  Equivalent Job

An equivalent job is any career position with the Laboratory or the University at a beginning salary at least equal to the salary paid the employee in the job from which that employee was laid off, regardless of salary range.

3.  One Week's Pay

One week's pay for nonexempt hourly rated employees is defined as the basic hourly rate (excluding shift differential and overtime) times 40 hours or the specifically approved work week. One week pay for full-time exempt employees is defined as the hourly equivalent of the monthly rate times 40 hours (or, for part-time exempt employees, times the percentage time equivalent).

C.  SEVERANCE PAYMENT CALCULATIONS AND METHOD OF PAYMENT

1.  Calculation

The severance payment will be made in an amount equal to one week's pay for each year of continuous full-time-equivalent Laboratory service (including service at Lawrence Livermore National Laboratory and Los Alamos National Laboratory while these labs were managed by the University of California). A fractional year of full-time service of six months or more is counted as one year of service. The severance payment is not to exceed a total of 26 weeks' pay.

2.  Method of Payment

Severance will be paid in a lump sum at the time of termination.

D.  LIMITATIONS

1.  Layoff

Severance payments will not extend the period of employment beyond the date of termination due to layoff.

2.  Previous Service Payment

Severance payments made to an employee will not include payment for any period of service for which the employee has previously received such payment.

3.  Exceptions

Severance payments will not be made to any employee who terminates for any reason other than layoff, with the following exceptions:

1. An employee who resigns after receiving formal notification of layoff but before the effective date of layoff may be provided severance payments with the approval of the Chief Operating Officer (COO) or designee.


2. An employee who resigns in lieu of another employee who would have been laid off may be provided severance payments with the approval of the COO or designee. Normally, such approval will be given only if the resignation will not have a detrimental effect on work in progress and if the employee concerned had not announced plans to resign or retire before the announcement of a layoff within the employee's division.

4.  Transfer

Severance payments will not be provided to an employee who has received a formal notification of layoff and who transfers to another Laboratory position or University career position without a break in service or to an employee who refuses a transfer to an equivalent job with the Laboratory or the University.

E.  REEMPLOYMENT

If an individual who has received severance payments is rehired at the Laboratory before expiration of the number of weeks for which the employee has received severance payments, the amount of the balance will be repaid to the Laboratory.