University of Minnesota  Procedure

Negotiating Severance Agreements with Professional and Administrative Employees


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Please use the contact section in the governing policy.

When the circumstances warrant, the president/delegate or other responsible administrator may consider the option of a severance agreement. For senior leaders, consult the Administrative Policy: Senior Leaders Compensation and Separation for direction. For other P&A employees, the responsible administrator is expected to consult with the unit Human Resource administrator, Office of Human Resource consultant, vice president for the Office of Human Resources (VPHR), and the Office of the General Counsel (OGC) to determine if a severance agreement may be appropriate. When considering the termination of a senior administrator with a severance agreement, the president/delegate will consult with the OGC. In cases of unusual importance, the president will consult with the chair of the Board of Regents.

In the event of a decision to terminate a P&A employee and offer a severance agreement, the VPHR must approve such action. In working out the agreement, the amount of severance payment or other severance terms is determined after taking into account the various factors outlined in this policy. Any costs associated with the severance are charged to the department’s budget. The Office of Human Resources will assist with the calculation of salary and benefits equivalent when an early termination involves a severance payment. The OGC will assist with composing the severance agreement and approve final language. The Office of Human Resources will also review the final severance agreement for accuracy of payment figures.

The P&A employee entering into a severance agreement is expected to review the terms of the severance agreement accompanying an early termination of appointment. Employment is terminated as of the date of the agreement and the employee signs a release from all claims against the University arising out of employment.