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Layoff Information & Policies

1. How are layoff decisions made?

   Making a decision to lay off an employee is a serious decision, and one of the hardest that managers have to make. Communicating that decision is also difficult for everyone involved. DLCs facing possible layoffs due to budget cuts may consider alternatives to layoffs, such as reduced schedules, job sharing, furloughs, or by leaving open positions unfilled.

   Layoffs are usually driven by specific work or a position that is being eliminated, a reorganization, or by budgetary constraints. In many cases, the decision as to which employees are laid off is dictated by the work to be eliminated and the skills of those engaged in the work. Where those factors do not dictate the choice, three other important factors are considered: individual performance, the length of employee service, and the status and goals of diversity in the department.

   Each of these factors is weighed in such a way as to be as fair as possible to the individuals concerned while also making sure the work of the department can be achieved by the remaining staff. (See Personnel Policy Manual, Section 6.2.1.)

   When a layoff decision is made, the DLC provides information to support that decision to HR which carefully reviews the DLC's reasons for the layoff to make sure the reasons given support the decision.

2. How is the decision about the employee communicated to the employee?

   The HR director and/or DLC manager in the unit, in collaboration with the unit's Human Resources Officer (HRO), meet to discuss the details for communicating the decision to the employee, including timing, with attention paid to what might be known about what is going on in the employee's life.

   In many cases, both the employee's manager and an HRO meet jointly with the employee to share the news of the decision. (If not, these meetings occur in close order). The decision is communicated in a manner consistent with MIT's values-that is, with respect, professionalism, and compassion. In the meeting, the employee is usually encouraged to take the rest of the day off to absorb what has just happened.

   Both the department and Human Resources offer support and make sure the employee has the right information about benefits and other details. The employee is given a packet of materials either at the meeting or shortly thereafter, including a list of FAQs, information about the Personal Assistance Program, and MIT's job search services.

   During the notice period, the HRO follows up with the employee to see how the person is doing and to answer any questions. The employee is also encouraged to use MIT's job search services, which offer one-on-one help with job strategy, resumes, and interviews. The HRO is available to assist the employee throughout his or her working notice period.

3. Can my layoff be kept confidential?

   Before the layoff decisions are announced, the decisions are kept confidential to the extent possible. After the employee is told about the layoff, it is usually not possible to maintain confidentiality indefinitely about the fact that the individual has been laid off. In some cases the work of the laid off employee may need to be reassigned; in addition, employees who have received a layoff notice are allowed a reasonable amount of time to seek another position at MIT or elsewhere so their increased absence may be noted.

   While most departments communicate right away that a layoff has occurred, they usually do not release the names of all people laid off, or wait to do so until they discuss it with the laid off individuals. If a manager is laid off, however, it may be best to notify that person's direct reports of the layoff without delay.

4. What is MIT's paid working notice policy?

   Due to our sponsored research environment, MIT does not provide severance to an employee who is laid off, but instead provides a paid working notice period. The length of notice corresponds to the employee's length of service, with the employee remaining on the payroll and continuing to receive benefits for the notice period (see Section 6.2.4 of the Personnel Policy Manual). Some are able to do their work off campus, and all are to be given time to look for new jobs.

   There is some flexibility to this policy, and in certain cases, (e.g., when there is no work or due to the sensitivity of the position) employees are asked not to return to work but are still paid for their working notice period. In this circumstance, the HRO works with the employee to make a smooth transition.

5. How is the notice period different from severance pay?

   Severance pay is typically paid as a lump sum, and is given with the expectation that the employee will no longer work for the employer. MIT does not offer a severance package. Instead, employees are given a defined working notice period during which time they remain working and on the payroll as active, benefits-eligible employees.

6. If, at the end of the notice period, the employee still hasn't found a job, can he or she be granted a leave without pay? If so, for how long?

   Leaves of absence without pay are not typically granted at the end of a notice period. Exceptions may be made in rare circumstances, with DLC and HR approval.

7. Can the employee take a lump sum payment equal to the notice period up front and not report to work?

   In most circumstances, this is not permitted. However, as said earlier, in some limited cases, such as where a job has security responsibilities, with prior approval a department may decide to relieve an employee of the obligation to report to work during all or part of the notice period; the notice requirement may then be fulfilled through a lump sum payment, salary continuation, or a combination of both.

8. What happens to an employee's benefits after the end of the working notice period?

   The employee is paid for their accrued but unused vacation time, up to a maximum of 40 days (plus any "fifth week" balance). As for other benefits, those depend on the terms of the specific benefit plans in which the employee is enrolled. Employees can continue to participate in the health plans for up to 18 months after termination of employment (under COBRA). MIT subsidizes COBRA costs for up to 12 months depending on years of service. Furthermore, there is a federal subsidy under ARRA (American Recovery and Reinvestment Act of 2009) that pays 65% of the cost for those eligible for up to 18 months. The federal subsidy applies only to those employees laid off on or before December 31, 2009.

9. Does MIT offer any counseling services?

   For specialized counseling and referral services, employees are encouraged to contact the Personal Assistance Program at 617-253-4911. In addition, the Center for Work, Family and Personal Life offers counseling service referrals for certain kinds of family-related issues, and can be reached at 617-253-1592 or worklife@mit.edu.

10. Do these policies apply to unionized staff?

    Layoffs and the rights of laid off employees who are covered by a collective bargaining agreement are specifically addressed in each union contract. If there are questions on the specifics, the employee's supervisor, HRO, the Labor Relations Office, or the employee's union can provide assistance.