Title
University of North Carolina at Chapel Hill Policy on Reduction in Force and Furlough for SHRA Employees
Introduction
Purpose
This policy addresses the requirements for Work Units to consider when implementing Reductions in Force and Furloughs for SHRA Employees.
This policy adheres to the Office of State Human Resources ("OSHR") Reduction in Force and Furlough Policy to ensure potential reductions are considered on a fair and systematic basis.
Scope
The Reduction in Force portion of this policy applies to only permanent SHRA Employees (full-time and part-time) who have completed their probationary period. Other types of employees have different separation rules and therefore are not eligible to be separated through a Reduction in Force.
The Furlough portion of this policy applies to all SHRA Employees (full-time and part-time), including permanent, probationary, time-limited and temporary.
Although this policy does not apply to EHRA Employees or student appointments, Work Units are encouraged to consider all staffing resources when determining which positions to retain.
Policy
Policy Statement
When a Work Unit is impacted by a loss or shortage of funding or work, abolishment of a position, or other material changes in position duties or organization, the Work Unit may need to restructure through a Furlough or a Reduction in Force. The director or department head must document the basis for the Furlough or Reduction in Force decision in a manner that clearly demonstrates reasonable and consistent application of the factors in this policy. The University Office of Human Resources will obtain any necessary approvals from the UNC System Office, the North Carolina Office of State Budget Management, and OSHR prior to enacting a Reduction in Force or Furlough.
Furlough
After considering alternative funding sources and any cost saving mechanisms, Work Units may implement a Furlough when funds are not available to pay an employee due to a temporary or permanent loss or reduction in funding. When implementing a Furlough, the University will follow the requirements outlined in the OSHR Reduction in Force and Furlough Policy.
To determine which employees will be impacted by a Furlough, the director or department head must apply the following factors in order:
- University needs. Consider the continuing work to be performed by the Work Unit and the number of positions in each branch, role, and competency level necessary to perform the continuing work.
- Type of Appointment. Temporary employees (SHRA or EHRA) must be considered for separation prior to implementing a Furlough for a permanent, probationary, or time-limited position.
Reduction in Force
To determine if a Reduction in Force is necessary, Work Units must thoroughly evaluate the need for specific positions and the relative efficiency of affected employees so that the University can provide the highest level of service possible with a smaller workforce. When a Work Unit determines that a Reduction in Force is necessary, permanent SHRA employees may be separated from employment at the University. The director or department head overseeing the affected Work Unit(s) is responsible for making the decision to implement a Reduction in Force for a particular employee or group of employees. To determine which employee(s) to Separate, the director or department head must apply the following factors in order:
- University needs. Consider the continuing work to be performed by the Work Unit(s) and the number of positions in each branch, role, and competency level necessary to perform the continuing work. After identifying the position(s) to eliminate, the director or department head must consider all employees in positions with the same or related classification. “Same or related classification” means positions in the identified branch, role, and competency level. To identify the specific employee(s) within that classification, the director or department head must apply the remaining factors.
- Type of appointment. SHRA time-limited, temporary, or probationary employees who perform work in the same or related SHRA job classification within the affected Work Unit must be terminated before any employee with a permanent appointment. To separate time limited, temporary, or probationary employees, directors or department heads must contact their assigned Talent Acquisition Partner in the Office of Human Resources (“OHR”).
- Relative skills, knowledge, and productivity of employees. The employees who the Work Unit will retain must have the skills and knowledge required for the continuing work of the Work Unit or be able to attain those skills and knowledge within a reasonable period of time in accordance with the operational needs of the Work Unit. Selection for retention must be consistent with employees’ most recent annual performance reviews and competency assessments as well as other relevant documentation including past performance evaluations and any active or inactive disciplinary actions. The director or department head may also consider the rating for each individual or institutional goal and value when employees’ overall performance ratings are equivalent.
- Length of total State service of employees. Total State service determines the length of service credit. Eligible veterans must be accorded one year of state service for each year (or fraction thereof) of military service, up to a maximum of five (5) years of credit.
OHR Talent Acquisition Partners will provide consultation to department management regarding the effective application and interpretation of Office of State Human Resources Reduction in Force Suggested Guidelines.
Benefits Provided for Reduction in Force
SHRA Employees who experience a Reduction in Force may be eligible to receive benefits as approved by the North Carolina Office of State Human Resources and the Office of State Budget Management. Affected employees may be eligible to receive the following:
- up to four (4) months of Severance Pay;
- Reduction in Force Priority Reemployment consideration for State positions for 12 months from the date of Reduction in Force notification;
- one (1) year of individual health insurance continuation, if eligibility requirements are met;
- payout of vacation, bonus leave, longevity (pro-rated, if applicable), and other applicable paid time off following separation; and
- career transition counseling services for a specified amount of time.
For more information on severance pay, priority reemployment, and other Reduction in Force benefits, see the Employee Resource Guide for SHRA Layoffs.
Definitions
EHRA Employees: employees not subject to the North Carolina Human Resources Act, including faculty, Exempt Professional Staff (EPS), and Senior Academic and Administrative Officers (SAAO).
Furlough: a temporary, involuntary leave without pay for eligible employees. A furlough may be for the whole or part of an employee's work schedule.
Priority Reemployment: status entitling SHRA employees who are impacted by a Reduction in Force to priority consideration for state positions when being considered alongside candidates with substantially equal qualifications.
Reduction in Force: the permanent separation of a career status SHRA employee due to a shortage or loss or funds or work, the abolishment of a position, or other material changes in position duties or organization.
Severance Pay: a continuation of pay for SHRA employees impacted by a Reduction in Force for a designated period of time following separation, which is based on an employee’s total state service and age adjustment factor.
SHRA Employees: employees subject to the North Carolina Human Resources Act.
Work Unit: a formally established and recognized unit, section, division or department of the University in which employees perform a closely related set of functions or duties. Departmental management may define individual research projects headed by a principal investigator (PI) as a separate Work Unit for the purposes of this policy. Any such assertion is subject to appropriate justification that demonstrates the unique nature of the research project and the skills of its assigned staff members as contrasted with other research projects supervised by either the same or different PI(s) within the same overall department or center.
Related Requirements
External Regulations and Consequences
University Policies, Standards, and Procedures
Contact Information
Policy Contact
Office: UNC Office of Human Resources
Unit: Employment & Staffing
Phone: 919-843-2300
Email: employment@unc.edu