Managers: Laws and Rules
"Severance Pay” is compensation received upon termination of employment for reasons primarily beyond the control of the state employee.
Severance pay does not include payments made to a terminated employee for accrued annual or sick leave, or compensatory leave.
No state employee is entitled to severance pay upon termination of employment if s/he quit employment voluntarily or was dismissed for gross neglect of duty, gross misconduct while on duty, or for other good cause.
A state employee may be entitled to severance pay if the employee was dismissed from employment because of reductions in staff or temporary or permanent layoffs, or for other reasons primarily beyond the control of the employee.
A state agency may provide financial incentives to encourage an employee to retire or resign if the resulting departure will increase agency efficiencies or reduce expenses.