MSU Human Resources - Layoff - Reduction in Force
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Policies, Union Contracts, Handbooks > Support Staff Policies and Procedures

Layoff - Reduction in Force

Policy

Applies to: All employees unless abridged by Collective Bargaining Agreements

It is the policy of the University to endeavor to provide continuing employment. Reduction in the work force which may be necessary due to lack of funds, lack of work, or other reasons will be accomplished through normal attrition whenever possible.

In addition to normal attrition, layoff due to lack of work and/or funds will be utilized as deemed necessary by the University.

An employee who is subject to layoff or who has been laid off shall be afforded a reasonable number of interviews for any position at the same or lower levels if MSU Human Resource Services deems the employee is qualified.

Eligibility for layoff and recall:

Must be a regular employee without "off-date" designation (see Policy and Procedure for Employment Status).

Must be scheduled to work half-time or more.

Must have completed a probationary period.

Definitions:

Layoff - the severance of an employee from the payroll due to lack of funds and/or lack of work, with eligibility for recall. To be eligible, the employee must satisfy eligibility requirements.

Recall - the reinstatement of a laid-off employee to active status within a period which is the lesser of the employee's length of service before layoff or 2 years. In the event of recall the employee will retain the original service date but does not receive service credits for the period of layoff. Accrued sick leave will be reinstated when the recalled employee returns to work (VARIES for APA and APSA).

Termination - the severance of an employee from the payroll without eligibility for recall.

Order of layoff:

Due to the nature of the work performed, the ability of the employee to fulfill the requirements of the work remaining shall be the prime factor in determining who in the department is to be laid off.

  1. Where ability to perform the work remaining is equal, the University will follow these priorities for reduction in force as much as practicable:
    • temporary before permanent,
    • probationary before non-probationary, and
    • employees with short service before employees with long service.

Recall:

  1. Employees with the greatest length of service will be recalled first, provided they can perform the duties of the position.
  2. Employees recalled from layoff may be eligible to receive specified pay adjustments.
Continuation of optional benefits: Optional benefits may be continued by employees on layoff status by direct payment to MSU Human Resources Benefits for the duration of the layoff (see Policy and Procedure for Leave of Absence Without Pay).

For APSA, APA, CTU, 1585, 274, FOP, and NURSES, the employer will make its regular contribution toward the cost of the health care coverage premium for the remainder of the month beyond the employee's last day on the payroll due to layoff.

Termination:

  1. An employee on layoff status will lose all recall rights and be terminated upon the occurrence of any of the following:
    • refusal to be available for interview,
    • refusal to accept a position offered if the salary offered is equivalent to 80% or more of the employee's salary before layoff, or
    • expiration of the recall eligibility period.
  2. Layoff status and attendant recall rights are also terminated should the employee accept other regular employment with the University.

Procedure

Request/approval of layoff:

Department:

  1. Notifies MSU Human Resources Staffing Services, in writing, of the proposed layoff. This information is to be provided in advance of the required employee Notice of Layoff described in #3.
  2. If the employee selected for layoff is not the least senior employee, submits the reasons for such action, in writing, to MSU Human Resources Staffing Services (including whether work of laid-off employee will be reassigned or eliminated).
  3. Notice of Layoff to employees:
    • Employees represented by APSA and confidentials are to receive 45 calendar days notice of layoff, not to be offset by accrued vacation.
    • Employees represented by APA and Nurses are to receive 45 calendar days notice of layoff, not to be offset by accrued vacation.
    • In an effort to reduce "bumping" in the CTU, 1585 and 999 bargaining groups, MSU Human Resources Staffing Services  is to receive 45 calendar days administrative notice, plus the following contractual notice: CTU = 15 working days; 1585 and 999 = 14 calendar days.
    • Members of the FOP are to receive 21 calendar days notice.
    • Members of 547 are to receive 7-14 days notice.
MSU Human Resources Staffing Services:
  1. Verifies information provided by department and approves layoff by preparing Reduction in Force letter. Copies are provided for the employee, department, and president of the applicable union/association.
  2. Provides assistance in determining sequence of layoff as necessary.

Notification to employee:

Department:

  1. After receipt of the approved Reduction in Force letter, gives the employee the Reduction in Force letter.
  2. Advises the employee to contact MSU Human Resources Staffing Services for possible reassignment, and MSU Human Resources Benefits to discuss continuation of optional benefits (see Policy and Procedure for Leave of Absence Without Pay regarding benefits).

Recall/reassignment:

MSU Human Resources Staffing Services:

  1. Reviews position vacancies and refers eligible employees for reassignment who have received layoff notice or who are on layoff.
  2. Informs employee's former department to route PAN form to new department and MSU Human Resources Employee Records if there is placement in a new department.
Department:
  1. Accepts the employee for the vacancy or submits written reasons for non-selection to MSU Human Resources Staffing Services for its approval.
  2. Other:
    • CTU employees subject to layoff and reassigned within their unit serve a training period of 256 working hours. CTU employees recalled from layoff serve a requalification period as specified by contract.
    • AP employees who are recalled or reassigned serve a 90-day evaluation period.
    • Employees covered by 999 or 1585 contracts serve a trial period if recalled or reassigned to a different classification.
MSU Human Resources Employee Records: A new Personnel Action Notice (PAN) form is generated and sent to the new employing department following MSU Human Resources Employee Records' input.

Miscellaneous:

  1. Employees may not be selected for layoff based upon:
    • race, sex, age, religion or other illegal discrimination, or
    • higher wages earned, or
    • performance problems.
  2. Employees may be assigned to perform duties of laid-off employees if the work is appropriate for their classification.
  3. Reduction in force should be avoided when possible by using alternative methods including:
  4. Layoff notices may not be given to employees while on leave of absence.
  5. Source of funding is not a criteria for determining which employee is to be laid off except for employees who have been designated as project technicians.
  6. When an employee on layoff or leave of absence (including illness and/or disability leaves due to Workers' Compensation) accepts a work assignment (half-time or greater), the original ending date of the leave may be extended by the number of days employed. The employee's record will indicate both the leave of absence or layoff status (primary) and the temporary employment status (multi-assignment).

Recall/termination:

MSU Human Resources Staffing Services: Will notify department of procedure to be followed in event of recall of an employee on layoff status, or in event of termination of employee at the end of layoff period.

Department:

  1. Sends the PAN form to the new department if the employee is being recalled.
  2. Sends the PAN form to MSU Human Resources Employee Records if the employee is to be terminated.
Refer questions to: MSU Human Resources Staffing Services (telephone 517-353-3720, e-mail)

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