3.5. SR 03-13-2000 - Laserfiche WebLink

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"ity of River MEMORANDUM Item # 3.5 TO: FROM: DATE: SUBJECT: Mayor and Council Lori Johnson, Finance Director March 13, 2000 Consider Severance Pay Change The recently approved union contract changed the payment of accrued sick leave (severance pay) to union employees at termination. In the past, the sick leave payment provisions have been the same for union and non-union personnel; therefore, the Council is asked to consider changing the Severance Pay provisions of the city's Personnel Policy Manual to be consistent with the union contract. There are two changes in the severance policy in the new union contract. The first change is in the years of service required to be eligible for severance pay. Currently, employees need to complete only two years of consecutive service to be eligible. The new language requires employees hired on or after March 1, 2000, to complete five years of consecutive service before being eligible. Employees hired before March 1, 2000, who have not yet completed five years of service will be eligible to receive severance after two years of service. Second, the maximum payment is proposed to increase for employees who have completed fifteen years of service. The maximum payment is currently fifteen percent of the sick leave balance up to a maximum payment of 144 hours. If approved, payment will increase to twenty percent and a maximum of 192 hours for employees terminating after completing 15 years of service. Action Requested The City Council is asked to consider changes to the severance pay section of the city's Personnel Policy Manual as attached. 13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425