Separation Pay (VI.F.1)

Volume VI: Human Resources
Chapter F: Terms and Conditions of Employment
Issuing Office: Human Resource Services
Responsible Officer: Executive VP & Treasurer
Responsible Office: Human Resources
Originally Issued: May 1, 2002
Most Recently Revised: March 1, 2025

TABLE OF CONTENTS

Contacts
Statement of Policy
Reason for This Policy
Individuals and Entities Affected by This Policy
Exclusions
Responsibilities
Definitions (defined terms are capitalized throughout the document)
Related Documents, Forms and Tools
Website Address for This Policy
History and Updates
Appendix

CONTACTS

STATEMENT OF POLICY

Purdue University provides Separation Pay to eligible employees whose employment is terminated by the University. Terminations must be conducted in consultation with Human Resources. Eligible employees are those who have been employed in one of the following appointment types for more than 90 consecutive calendar days immediately prior to being terminated by the University:

1. Executive
2. Management
3. Professional
4. Operations/Technical
5. Administrative and Operational Support
6. Police, Fire and Skilled Trades
7. Lecturer

Generally, an employee’s benefits end on the employee’s last date of employment. Receipt of Separation Pay does not extend the employee’s term of employment or benefits coverage period. Employees who resign in lieu of being terminated by the University will receive Separation Pay if they meet all other eligibility requirements outlined in this policy.

REASON FOR THIS POLICY

In situations when Purdue terminates employment, it is often in the best interest of the employee and the University to make the termination effective immediately. To accommodate an immediate termination, the University provides Separation Pay for eligible employees as outlined in this policy.

INDIVIDUALS AND ENTITIES AFFECTED BY THIS POLICY

All campuses, colleges, schools, departments, offices, and units of Purdue University.

All employees in eligible appointment types.

EXCLUSIONS

The following appointment types and situations are not eligible for Separation Pay:

• Tenured and tenure-track faculty, clinical and professional faculty, and research faculty
• Undergraduate and graduate student staff
• Temporary employees
• Limited-term lecturers
• Postdoctoral researchers, clinical residents, and clinical interns
• Employees terminated by the University in accordance with the policy on Reduction in Workforce (VI.F.2)
• Employees with less than 90 days of employment with the University
• Employees terminated for serious misconduct
• Employees terminated because they have exhausted all leaves available to them
• Employees terminated for job abandonment
• Employees whose contracts expire and are not renewed

Tenured faculty who also hold a non-faculty appointment are not eligible for Separation Pay when the non-faculty appointment ends.

RESPONSIBILITIES

Supervisors/Unit Head

• Consult with Human Resources when contemplating the need to terminate an employee.
• Upon determining that the employment relationship should be terminated immediately, conduct a termination meeting with the employee; provide a written notice of termination that specifies whether they are eligible for Separation Pay.
• Arrange for the removal of the employee’s personal items from the workplace.

Terminated Employees

• Upon notice of termination, immediately leave the University premises.
• Promptly return any University property.

DEFINITIONS

All defined terms are capitalized throughout the document. Refer to the central Policy Glossary for additional defined terms.

Separation Pay
A payment equal to two weeks of pay for employees in positions that are non-exempt (typically paid every two weeks) or half of one month’s salary for employees in positions that are exempt (typically paid monthly).

Refer to the policies on Terms and Conditions of Employment of Staff (VI.F.5) and Terms and Conditions of Employment of Lecturers (VI.F.4) for definitions of the eligible appointment types listed in this policy.

RELATED DOCUMENTS, FORMS AND TOOLS

Salary of Administrative Officers Returning to the Faculty (II.C.2)

Terms and Conditions of Employment of Staff (VI.F.5)

Terms and Conditions of Employment of Lecturers (VI.F.4)

WEBSITE ADDRESS FOR THIS POLICY

www.purdue.edu/policies/human-resources/vif1.html

HISTORY AND UPDATES

March 1, 2025: Added Executive staff to list of eligible appointment types and updated the names of other types. Updated the Exclusions section to clarify that appointments not explicitly included are excluded. Added definition of Separation Pay.

November 18, 2011: Policy number changed to VI.F.1 (formerly IV.14.1).

October 11, 2006: Version date.

May 1, 2002: This policy amends section 8B of Executive Memorandum No. B-55 and pertinent sections of Business Office Memorandum No. 142.   

APPENDIX

There are no appendices to this policy.