Category: HR - EMPLOY POLICY & PROCEDURE Subject: Termination of Employment Classification: Management Approved Policy Owner: Senior Vice President, Human Resources Approved by: WFH President and CEO Effective: December 1, 2011 POLICY: It is the policy of Wheaton Franciscan Healthcare (WFH) to treat all terminations of employment in a consistent manner, as determined by the type of termination. RATIONALE: Our Value of Respect calls us to handle all terminations in a consistent, dignified, and compassionate manner. Our Value of Stewardship calls us to process all terminations in a timely manner to minimize WFH’s liability for ineligible benefit claims. SCOPE: This policy applies to WFH associates in the owned and managed organizations. PROCEDURE: A. Voluntary Termination / Resignation. Voluntary termination or resignation is defined as an associate-affected termination of employment. For the purposes of this policy, associate death or retirement will also be treated as a resignation. 1. An associate intending to resign his or her employment with WFH should submit the resignation in writing to his or her supervisor, who must then forward the written resignation with the appropriate termination form to Human Resources (HR). 2. It is the responsibility of the resigning associate’s supervisor to immediately notify HR of the associate’s resignation via the appropriate personnel termination form. Failure to notify HR in a timely manner may negatively affect the associate’s benefit status and/or final paycheck or WFH’s liability for ineligible benefit claims. 3. Associates are required to notify WFH in advance of their intended last day of work. Adequate notice is defined as: a. Non-exempt (hourly) Associates: Two (2) weeks notice b. Leadership and Exempt (salaried) Associates: Four (4) weeks notice 4. An associate resigning without proper notice may not be eligible for rehire and will not be eligible for PTO payout, as allowed by state law. 5. The termination date is determined as the last day worked. Use of paid time off (PTO) will not be allowed to extend the required notice period. 6. An associate who is absent for two (2) or more consecutive work days without notifying his/her supervisor will be considered to have resigned his/her employment with the organization without notice in accordance with the Work Attendance Policy. 7. An associate who fails to return to work at the expiration of an approved leave of absence will be considered to have voluntarily resigned his/her employment without notice. The termination date is determined as the day the associate was HR-EMPLOY Termination of Employment Page 1 of 3 eligible/required to return to work in accordance with the Leave Of Absence – Family & Medical Policy or the Leave Of Absence – Education, Military & Personal Policy. 8. An associate with six (6) or more months of service may remain on a leave of absence due to a disability and maintain employment for a maximum of six (6) months from the first date of the disability. An associate with less than six (6) months of service may remain on a leave of absence due to disability and maintain employment for a maximum of two (2) months. Termination of employment may occur if the associate is unable to return to work, with or without any additional reasonable accommodations. B. Staff Reduction Due to Job Elimination. 1. Termination of employment caused by the elimination of a job, a change in organizational structure, or a facility or service closure is specifically addressed in the Staff Reduction/Replacement and Severance/ Outplacement Benefits Policy 2. HR must be contacted prior to any termination of employment due to job elimination. 3. Termination of employment due to job elimination is not to be used as a means to deal with associate disciplinary issues. In those instances, refer to the Disciplinary and Corrective Action Policy C. Discharge. Discharge is defined as a WFH-directed termination of employment resulting from misconduct, work performance problems, unsatisfactory relationship between WFH and the associate, or for the good of WFH. 1. HR must be contacted prior to the discharge of any associate. At that time, HR will work with the manager to: a. Review the facts of the situation b. Review existing documentation c. Determine appropriate action d. Outline the process to be followed e. Provide information regarding required continuation of any benefits 2. In the event that immediate action must be taken and a representative from HR is not available, an associate may be “suspended pending investigation and further action”. HR must be notified as soon as possible following such suspension. a. An associate being discharged shall be informed of the reason or reasons for the discharge. b. HR will process the paperwork for an associate terminated as a result of a discharge. c. For appeals rights and processes, associates should refer to the Fair Treatment Policy. D. Benefits for the Terminating Associate. 1. Continuation of various benefits after termination of employment is subject to the specific limitations of the plans in which the terminating associate was enrolled. Accordingly, prior to making any commitments regarding benefits continuation, managers should consult with HR. 2. Upon termination of employment, associates will automatically be paid their eligible PTO balance up to 240 hours/30 days, unless state law requires payout of a different amount, if the associate has provided adequate notice for the resignation, as defined above, and has worked through the required notice period. a. The notice must be in writing. HR-EMPLOY Termination of Employment Page 2 of 3 b. PTO will be paid at the base rate at time of termination. c. PTO may not be used to fulfill the required notice period. d. Failure to provide adequate notice and work through the required resignation notice period will result in forfeiture of any unused PTO unless state law requires otherwise. e. Associates who separate prior to successfully completing their introductory period are not eligible to receive any unused PTO hours. E. Claims for Unemployment Compensation. It is the practice of WFH to appeal all non-meritorious claims for unemployment compensation. F. Distribution of Final Paycheck 1. A terminating associate’s final payment will occur on the pay date following the last day worked unless state law requires otherwise. 2. Any debts owed to the organization for associate/employer related transactions may be withheld from the former associate’s final payment, in accordance with state law. G. Termination Notification to Interested Parties 1. Notification of an associate’s termination will be made to the appropriate site departments (i.e. Facilities, Security, Information Systems, Nursing education) by either HR or the supervisor as outlined in local procedures. 2. Following the notification of termination, it is the responsibility of those departments to update their records of the termination and to rescind the terminated associate’s access to any of their systems. H. Rehire 1. The Rehire Guidelines Policy defines the practices to be followed by all WFH organizations regarding the reinstatement of certain benefits, seniority and accrual status, including certain pension benefits, for individuals who are rehired. 2. A discharged associate is eligible for rehire only upon review from HR. Replaces: Cross reference: Disciplinary and Corrective Action policy Fair Treatment policy Leave Of Absence – Education, Military & Personal Policy Leave of Absence – Family and Medical policy Paid Time Off policy Rehire Guidelines policy Staff Reduction/Replacement and Severance/ Outplacement Benefits policy Work Attendance policy Review Period: One (1) year Original Policy Date: October 1, 2007 Dates Updated: January 1, 2010; November 1, 2010; December 1, 2011 HR-EMPLOY Termination of Employment Page 3 of 3