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The University of Minnesota (University) shall honor academic professional and academic administrative (P&A) employee (93xx, 96xx, 97xx) appointments through the official end date of the employment contract unless the employee has agreed to an earlier end to the appointment or a ground for early termination by the University exists as outlined in this policy. A ground for termination of an appointment prior to the employment contract's official end date, without the employee's agreement includes the following: 1) fiscal emergency, 2) program curtailment, or 3) just cause sanction. The University at its initiation also may enter into a severance agreement with an employee, in which the employee agrees to end the appointment early. The conditions and procedures for each of these early termination provisions are outlined in this policy and the associated procedures. Early termination of an appointment is different from non-renewal of an appointment which provides employees the opportunity to work through the end of their employment contract.

PROVISIONS FOR EARLY TERMINATION UNDER CIRCUMSTANCES OF FISCAL EMERGENCY, PROGRAM CURTAILMENT, AND JUST CAUSE SANCTION

1. Application of Policy

   The University may terminate an academic professional and administrative (P&A) employee (93xx, 96x, 97xx) appointment prior to the employment contract's official end date without the employee's agreement for any one of the following three reasons: 1) fiscal emergency, 2) program curtailment, or 3) just cause sanction.

   1. Fiscal Emergency: Fiscal emergency is a drastic reduction in University budget that has been officially recognized and declared by the Board of Regents.
   2. Program Curtailment: Program curtailment is the elimination, reduction, modification or redirection of an academic program or service or in a non-academic program or service that is recognized by the senior administrator of the campus, college or administrative unit.
   3. Just Cause Sanction: Early termination sanction may be imposed as a disciplinary sanction based on just cause. Just cause involves reasonableness, evidence of forewarning, investigation, proof, consistency, and equity. Just cause termination of the employment contract is grievable.


2. Special Appointment-Related Provisions


1. Termination of a Continuous (G) Professional Appointment:
   An academic professional (97xx; 9621-9630) in a continuous (G) appointment may be terminated for the three reasons cited. Continuous academic professional employees shall have a twelve month notice of termination or comparable severance regardless of years of service when terminated for reasons of fiscal emergency or program curtailment, unless there are compelling reasons to the contrary.
2. Termination of Acting/Interim (M) and Limited (L) Administrative Appointments:
   Employees holding an acting/interim (M) academic administrative appointment may have their position terminated at any time, including when the position is filled on a permanent basis. Employees holding a limited (L) academic administrative appointment may have their appointment terminated at any time regardless of any end date specified in their Notice of Appointment. Termination from acting/interim or limited academic administrative appointments is not grievable.

PROVISIONS FOR INSTITUTION-INITIATED SEVERANCE AGREEMENTS

1. Severance Agreement

   Under exceptional circumstances, and with the approval of the president or delegate and the vice president for human resources (VPHR) in accord with the procedures set forth in this policy, the University at its initiation may enter into a severance agreement with a P&A employee in exchange for the early termination of the appointment. There is no entitlement to such agreements.

2. Implementation of a Severance Agreement

   A severance agreement may be initiated and implemented by the University according to the following guidelines:

   1. The University at its initiation may enter into a mutually agreed upon severance agreement in exchange for early termination of appointment. Employees covered by this provision include academic professionals holding an annually renewable (K), multiple year (J), clinical scholar-Medical School (I), or yearly appointment-Medical School (W) contract or academic administrators holding an annually renewable (K) or multiple year (J) contract. Employees must also be holding a 67 to 100 percent time position and an appointment term of nine months or greater. If the severance agreement includes a lump sum payment, the amount to the individual shall not exceed the total value of the employee's salary for a period not longer than the length of the notice period to which the employee is entitled plus the cash equivalent of the identical number of months of continued University subsidy to the employee's current health care (medical and dental) coverage benefits. The president may approve exceptions. Factors to consider in reviewing a proposed severance agreement include cost to the University, advantages to the University in replacement of the employee, advantages to the University in minimizing disruption to the unit, and the overall interests of the University.
   2. For senior administrators on limited (L) appointments, a severance agreement may be entered into under the following combination of circumstances: (1) the administrator is being asked to leave before the end of their current appointment year, (2) the administrator is not being terminated for just cause, and (3) the administrator does not have a contract providing for different severance terms. The severance agreement may provide for up to six months of salary at the discretion of the president or delegate and the cash equivalent of the identical number of months of continued University subsidy to the employee's current health care (medical and dental) coverage, paid out as a lump sum. The president may approve exceptions. In determining the number of months of severance payment (up to six months) the University will consider years of service in this or other senior positions at the University, the individual's overall record of performance during that time, whether the individual has been given the option to stay until the end of the normal appointment year or longer, and any other equitable factors.
   3. When the University initiates an early termination for an individual holding an academic administrative appointment who also holds a tenured faculty or continuous academic professional appointment, consideration is given first to providing the affected employee with either an administrative transitional leave or other appropriate professional development leave, depending on eligibility. If the employee chooses not to remain at the University in the faculty or academic professional role, a severance agreement may be considered.
   4. The president shall consult with the chair of the Board of Regents in cases of unusual importance. In all cases, the employee shall terminate employment as of the date of the agreement and must release all claims against the University arising out of employment.

The University provides for early termination of individual P&A appointments due to rare and exceptional circumstances as set forth in this policy.

• Terminating Professional and Administrative Employees in the Case of a Fiscal Emergency
• Terminating Professional and Administrative Employees Due to Program Curtailment
• Terminating Professional and Administrative Employees for Just Cause
• Negotiating Severance Agreements with Professional and Administrative Employees

• Human Resources Template Letter Library for associated letters and checklists

Subject	Contact	Phone	Fax/Email
General Information or Procedural Assistance	Primary: Responsible administrator/supervisor Secondary: Local campus, college, or administrative unit HR administrator Other (as needed): Office of Human Resources specialist or consultant	Office of Human Resources Specialist and Consultant List	Office of Human Resources Specialist and Consultant List
Legal Information	Office of the General Counsel	612-624-4100	ogc@mail.ogc.umn.edu
Document Processing	HRMS Key Contact Office of Human Resources Call Center	HRMS Key Contact List 612-625-2016	HRMS Key Contact List

Academic Program

Those programs from which degrees are offered, credit-bearing degrees, majors, minors, certificates, and formal tracks that appear on official University of Minnesota transcripts.

Early Termination

The ending or concluding of an employment contract prior to the end date in the employee's notice of appointment, or where a special contract is authorized to supersede the notice of appointment, the end date in the special contract.

Employment Contract

The Notice of Appointment that is the record governing employment by the University including salary, dates of employment, and terms. The Notice of Appointment shall constitute the University's contract with an employee. With the exception of special contracts authorized to supersede the Notice of Appointment, to the extent a letter of agreement contradicts the Notice of Appointment or University policy, it does not constitute the terms of employment.

Fiscal Emergency

A drastic reduction in the University budget that has been officially recognized and declared by the Board of Regents.

Just Cause

A ground for discipline and takes into account reasonableness, evidence of forewarning, investigation, proof, consistency, and equity.

Non-renewal

An appointment shall mean an action of informing an employee that their employment contract will not continue in effect beyond the end date on their notice of appointment.

Program Curtailment

The discontinuance, reduction, modification or redirection of an academic program or service or a non-academic program or service recognized by the senior administrative unit head (e.g., dean, chancellor, vice president) of a campus, college or administrative unit.

Non-academic Programs

Those programs that do not fall under the definition of academic programs, the program outcomes of which do not appear on a transcript. Non-academic programs recognized as such by the senior administrator of the unit, may be named as centers, institutes, programs, services, etc. and are managed out of campus, college, or administrative units.

Senior Administrator

Appointments in the following classifications: President, Senior Vice President for Academic Affairs & Provost, Senior Vice President, Vice President, Associate Vice President, Assistant Vice President, Chancellor, Associate Chancellor, Assistant Chancellor, Vice Chancellor, Provost, Dean, Executive Director and Corporate Secretary to the Board of Regents, General Counsel, University Librarian, and Chief of Staff, President's Office.

FISCAL EMERGENCY AND PROGRAM CURTAILMENT

Equal Opportunity and Affirmative Action (EOAA) Director and EOAA Liaison

• Consult with the responsible administrator on issues of diversity and discrimination in situations of fiscal emergency or program curtailment when significant numbers of P&A employees will be adversely affected.

Responsible Administrator

• Consult with the unit human resource administrator, Office of Human Resources (OHR) consultant, unit EOAA liaison, EOAA director and the VPHR as appropriate to the situation and as it impacts P&A employees.
• Obtain approvals in accord with the procedures outlined in this policy.
• Provide to the affected P&A employees written notice of termination.

Unit Human Resource Administrator/OHR Consultant

• Consult with the responsible administrator on policy interpretation and workforce related issues including both non-renewals and terminations of appointments as a result of fiscal emergency or program curtailment.

Vice President for Human Resources (VPHR)

• Consult with the responsible administrator on issues of early termination related to fiscal emergency and program curtailment in cases where significant numbers of P&A employees will be adversely affected.
• Approve early terminations of P&A appointments.

Senior Administrator of the Campus, College, or Administrative Unit

• Review and approve P&A appointments that are to be terminated for purposes of fiscal emergency.

JUST CAUSE SANCTION

Office of the General Counsel (OGC)

• Consult with the responsible administrator regarding on performance issues which could lead to disciplinary action and/or just cause termination.

Responsible Administrator

• Consult with the unit human resource administrator, OHR consultant and/or OGC as appropriate to the situation when performance issues could lead to disciplinary action and/or just cause termination.
• Manage the investigative and decision-making process and maintain appropriate communications with the employee and others who should be aware of the situation; seek help from appropriate resources when needed.
• Determine if the affected P&A employee should continue with their normal duties or not and proceed accordingly.
• Consult with appropriate parties in accord with the procedures outlined in this policy before making the final decision to implement a just cause termination.
• Provide written notification of termination for reasons of just cause.

Unit Human Resource Administrator/OHR Consultant

• Consult with the responsible administrator regarding performance issues which could lead to disciplinary action and/or just cause termination.

Affected P&A Employee

• Continue to carry out work unless other provisions are made.
• Respond at appropriate times and as desired to allegations and results of the investigation.

SEVERANCE AGREEMENTS

Office of the General Counsel

• Consult with the president/delegate or other responsible administrator in accord with the procedures and at such time a severance agreement is being considered.
• Assist with language to be incorporated into the agreement and provide final approval of the language in the document.

President/Delegate or Other Responsible Administrator

• Consult with others such as the VPHR or the EOAA director as appropriate to the circumstances.
• Determine final details of a severance agreement involving all appropriate individuals and following through with appropriate reviews of the final document.
• Obtain approvals in accord with the situation and the procedures outlined in this policy.

Unit Human Resource Administrator/OHR Consultant

• Consult with the responsible administrator regarding consideration of entering into a severance agreement.

Vice President for Human Resources

• Consult with the parties involved in consideration of entering into a severance agreement as described in this policy.
• Review and approve the offering of a severance agreement and the terms of the agreement.

Employee Benefits

• Affirm the accuracy of the severance payment calculations.

Affected P&A Employee

• Sign the severance agreement and relinquish all future claims to the University regarding this action.

There are no appendices associated with this policy.

1. Under the circumstance of termination for fiscal emergency or program curtailment, are P&A employees holding probationary (H) academic professional type appointments accorded (1) termination provisions as provided for other P&A employees on annually renewable (K) or multiple year (J) contracts, or (2) termination provisions accorded continuous (G) academic professional appointments?

   Academic professional employees holding a probationary (H) appointment are provided the same provisions under circumstances of fiscal emergency or program curtailment as other P&A employees holding annually renewable (K) or multiple year (J) appointments.

2. In the situation of termination for program curtailment, may P&A employees be accorded the provisions under the Administrative policy Academic Staff Non-Renewal of Appointment if all eligibility requirements are met and if the program is consistently applied across the affected program area?

   Yes, the non-renewal program for P&A employees may be implemented during a time of program curtailment. Refer to the policy for an understanding of the provisions.

3. If academic professionals with a continuous (G) appointment are terminated from their appointment due to program curtailment as defined in this policy, and offered another position within the same campus, college or administrative unit, with the new or vacant position being defined as an annual renewable (K) or multiple year (J) appointment, would the employee be allowed to keep their continuous (G) appointment status in the new position?

   No. If the employee opts to be hired into the new/vacant position, the terms of the new position would apply.

4. What does seniority mean under the circumstance of program curtailment?

   Under the circumstance of program curtailment and within academic professional appointments, seniority means first, the holding of a continuous (H) academic professional appointment and second the length of continuous employment in a P&A class as defined in this policy and within an appointment classification or classification series if one exists, such as the librarian series (9715 Assistant Librarian, 9714 Associate Librarian, and 9713 Librarian). Within academic administrative appointments, seniority means the length of continuous employment in a P&A class as defined in this policy and within an appointment classification or series if one exists, such as the departmental director series (9339 Assistant Departmental Director, 9338 Departmental Director, 9337 Departmental Director).

• Board of Regents Policy: Conflict Resolution Process for Employees
• Administrative Policy: Non-Renewal of Appointment for Academic Professional and Administrative Employees
• Administrative Policy: Non-Renewal Program for Academic Professional and Administrative Employees
• Administrative Policy: Appointments of Academic Professional and Administrative Employees
• Administrative Policy: Review of Proposals for New and Changed Academic Programs
• Graduate School Policy: Merger or Discontinuance of Programs under the Aegis of the Graduate School
• Administrative Procedures: Administrative Procedures for the Conflict Resolution Process for Employees
• Administrative Information: Academic Job Codes and Titles
• Administrative Information: Appointment Type Definitions

Amended:

May 2008 - Policy converted to the new University-wide format for administrative policies.

Amended:

May 2007 - Early termination of appointment policy information was drawn from the Academic Professional and Administrative Policy and Procedures Manual (Issued February 1984); the Administrative policy: Severance for Academic Professional and Administrative Employees, adopted January 12, 1990 as a Board of Regents Policy and moved to an administrative policy, March 9, 2007; and the Administrative policy: Severance for Senior Administrators on Limited (L) Appointments, adopted August 13, 1999. Procedures and required approvals have been clarified and formalized. Edits were made and information updated and expanded. Policy information was put into standard University-wide policy format.

Adopted:

August 13, 1999 - Administrative policy: Severance for Senior Administrators on Limited (L) Appointments.

Adopted:

January 12, 1990 - Created by the Board of Regents and moved to Administrative policy, March 9, 2007: Severance for Academic Professional and Administrative Employees.

Adopted:

1984 - Early termination policy language included in the Academic Professional and Administrative Staff Policy and Procedures Manual.

Effective:

March 2007

To obtain a copy of a historical policy, e-mail the U Policy Librarian at policy@umn.edu or call 612-624-4372.