Involuntary Termination of Employment Policy

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POLICY

In order to ensure uniform and consistent procedures for employee terminations, The company has established rules applicable to all such terminations.

All involuntary terminations must be approved by the employee’s manager, coordinated with Human Resources and processed in accordance with the provisions outlined in this policy. Notwithstanding the foregoing, should a manager be present when serious misconduct occurs, he/she may immediately suspend the employee, pending an investigation and notification to Human Resources.

SCOPE

This policy applies to all full-time and part-time employees of The company.

PROCEDURAL NOTES

1. When the Company initiates a termination (i.e., the employee is terminated), the termination is considered involuntary.

2. Involuntary terminations may occur for a variety of reasons, including with cause (i.e., employee misfeasance or malfeasance) or without cause (i.e., as a part of a layoff).

3. When practical, employees will be warned and counseled. However, failure to correct behavior or further violation of company policy may result in additional disciplinary action, up to and including termination. Depending on the nature of the offense, the Company reserves the right to terminate any employee without warning.

4. Warnings and counseling are to be documented on the Disciplinary/Counseling/Termination Report. The Company will generally terminate an employee after the third offense.

5. With respect to all involuntary terminations:

a. The company will inform the employee of the reason for termination.

b. The date of separation will be the employee’s last day worked.

6. With respect to all involuntary terminations without cause:

a. The employee’s record will indicate an involuntary termination without cause (i.e., from layoff).

b. Severance pay is:

i. Discretionary, based upon a number of factors (i.e., length of service to the Company, level of responsibility, reason for separation, etc.). No employee is entitled to severance pay upon termination.

ii. Given only with the approval of the Chief Executive Officer.

7. When appropriate, Human Resources will attempt to schedule and conduct an exit interview with the terminated employee. An exit interview helps the Company to obtain information that may be useful in improving employee relations as well as to provide additional information to the terminated employee regarding 401(k), COBRA, etc.

8. The employee’s manager must complete a Payroll Transaction Form provided by Human Resources. This form must be completed to ensure that the employee is terminated in a uniform and consistent manner from all appropriate systems, that Company property is reclaimed and that the employee’s final paycheck is paid in accordance with state and federal laws or regulations, etc.

9. All terminated employees will be paid in accordance with state and federal laws. Earned but unused Paid Time Off will be paid in accordance with the company’s Paid Time Off policy.

10. Health and dental insurance for a terminated employee will terminate the last day of the month in which the termination becomes effective, unless otherwise noted in a written separation agreement. Short and long term disability insurance and life insurance will terminate on the day in which the employee terminates. Human Resources is responsible for terminating all insurance and notifying the employee of his/her conversion rights.



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