The following policies and procedures apply whenever it becomes necessary to lay off one or more employees because of reduced funding, changes in the nature and scope of the work, or for other operational reasons.
Covered in this policy are those factors that influence the determination of employees to be laid off, as well as the content of the letter of notification, the length of the notice period, the method of funding the notice period to a long-service employee, provisions for continuation of salary and extension of medical benefits, and the persons who should be consulted in the process. The layoff provisions of collective bargaining agreements will take precedence whenever they are in conflict with the provisions of this statement.
7.6.1 Decision Criteria
In making a decision about a layoff, when the choice is not clearly dictated by the work to be eliminated and the range of skills of those engaged in it, department heads should carefully consider individual performance, the length of employee service, and the status and goals of affirmative action in the department. No one of these considerations automatically outweighs the other. Each must be judged and balanced in such a way as to be as fair as possible to the individuals concerned while also serving the Institute's need for an effective staff.
Although seniority is not an overriding factor in personnel administration at MIT, length of service at the Institute must be an important consideration in determining individuals to be laid off. Long service testifies to loyalty and commitment and implies a record of responsible performance. At the same time, outstanding work also must be recognized in layoff decisions. Superior performance on the part of an individual with less service may lead to a decision to retain the more junior person. Similarly, our commitment to the employment and advancement of women and members of minority groups must play a part in the layoff decision. Underrepresentation of minorities and women within the department should be an influential factor in the decision.
The final choice in each instance will derive from the interplay of these criteria, and each should be considered and weighed. It is important to remember that layoff notices carry the presumption that the individuals receiving them are valuable contributing members of the community who must be released only because insufficient work and/or funds exist to continue their employment. A concerted effort will be made to assist these employees in their job search. It should be clear that layoff is not a method of terminating employees who have not performed in an acceptable manner. The regular Institute policy for warning and discharge for cause should be followed in such cases.
7.6.2 Consultation with Human Resources Officers
In all these actions, department heads are urged to consult with their human resources officers for assistance in assuring that all Institute policies and procedures pertaining to layoff are fully understood and applied.
In the case where a department head proposes to issue a layoff notice to a minority employee, to a woman with staff status, or to an individual with ten or more years of continuous service, the department head should forward to the human resources officer a statement describing the situation and giving the basis for the decision to lay off this particular person. After reviewing the case, the human resources officer may urge the department head to discuss the action with the appropriate dean or vice president or the Provost before making a final decision. The written approval of the appropriate senior officer will be required prior to issuing a layoff notice in such cases.
7.6.3 Letter of Notification
When the layoff decisions have been made, each individual affected should immediately receive a formal, written letter of notice. The letter should inform the individual of the reason for the layoff and the length of the notice period. It should be made clear that the individual is expected to carry out his or her usual responsibilities during the notice period but that a reasonable amount of time will be allowed to seek another position at MIT or elsewhere. The letter of notice should also suggest that the individual contact his or her human resources officer for assistance in seeking another position at the Institute. It should be noted that if a comparable position at MIT is offered and refused, the notice period will end, and the employee will be terminated.
A copy of the letter of notification should be forwarded to the human resources officer at the time it is given to the individual, together with information about the individual's length of service, skills, and experience that may be helpful in determining qualifications for existing vacancies.
7.6.4 Period of Notice
The period of notice does not represent severance pay but rather a period during which the individual is continued in an employee status at regular salary until the end of the notice period or until the individual is employed elsewhere, whichever comes earlier. The provisions of this policy governing the period of notice do not apply to cases of discharge for cause, voluntary resignation, or the expiration of appointments having specific stated termination dates. Notice to laid-off employees will be given in accordance with the following schedules.
Administrative staff and sponsored research staff, except for appointments at the principal ranks, will be given the following notice:
0 to 1 year of service -- 2 months notice
1 to 5 years of service -- 3 months notice
5 or more years of service -- 3 months notice plus 1 additional week for each year of service (or major portion thereof) over 5 years
Support staff will be given the following notice:
0 to 5 years of service -- 2 months notice
5 or more years of service -- 2 months notice plus 1 additional week for each year of service (or major portion thereof) over 5 years
7.6.5 Funding of Notice to Long-Service Personnel
When the minimum notice period for service in excess of five years cannot be supported by the funds available in a contract or grant, the salary costs for the additional notice may be absorbed by funds administered centrally by the department or other administrative unit. In such a case, arrangements to draw on such funds must be approved by the Vice President for Human Resources, as well as by the Department Head of the area from which the funds are drawn.
7.6.6 Extension of Medical Coverage in the Event of Layoff
Faculty and staff members who are laid off because of a lack of work or funds may continue their health insurance plan. The Benefits Office can provide booklets that detail eligibility for and duration of this extension of health insurance.
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