Secure Transition for Employee Pay
Policy Proposal: Employee Termination requirements, Paid Time Off Standards, and transition funds to supplement unemployment.
Objective:
To enhance employee financial security during job transitions, reduce dependency on unemployment benefits, and standardize benefits for improved workplace equity.
- Notice Period Termination Policy:
Employers must adhere to the following requirements when employees submit notice of resignation:
• Employers cannot terminate an employee after they provide notice unless both parties agree to modified terms or adhere to the following.
• If an employer terminates an employee after a notice of resignation is given, the employer must compensate the employee for the remaining notice period. For example, if a two-week notice is given and the employee is terminated after one day, the employer must pay for the remaining nine days as if worked if following a stand 5 day work schedule.
- Paid Time Off (PTO) Standards:
• PTO shall be a mandatory benefit available to all employees after a probationary period (or earlier, at the employer’s discretion).
• Probationary periods cannot be longer than 90 days, unless agreed upon by both parties prior to hire.
• Upon termination of employment, any accrued PTO must be paid out to the employee in addition to notice period compensation. This ensures financial stability for employees seeking new job opportunities.
• If PTO is offered before the completion of the probationary period, payout amounts upon termination may follow a prorated scale based on the percentage of probationary time completed.
- Paid Holidays:
• Public holidays shall be compensated at the same rate as a standard workday for eligible employees.
• Holiday pay during the probationary period will follow the same prorated percentage as PTO payouts, based on the proportion of completed probationary time.
Rationale:
These policies aim to provide employees with a financial safety net during transitions, encourage fair treatment, and minimize reliance on unemployment benefits. Standardizing PTO and holiday pay benefits ensures equitable treatment across workplaces while incentivizing employee retention during probationary periods.