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HomeMy WebLinkAbout6.e. Advance Resignation Notice Policy EXECUTIVE SUMMARY City Council Regular Meeting: October 19, 2021 AGENDA ITEM: Advance Resignation Notice Policy AGENDA SECTION: Consent PREPARED BY: Logan Martin, City Administrator Emmy Foster, Assistant City Administrator AGENDA NO. 6.e. ATTACHMENTS: Draft Policy APPROVED BY: LJM RECOMMENDED ACTION: Motion to approve the Advance Resignation Notice Policy effective January 1, 2022. BACKGROUND As discussed at the October 5th City Council Work Session, succession planning is critical to the continuance of good service and operations. Included in the City’s 2021-2025 Strategic Plan is the development of an Advance Resignation Notice Program in pursuit of the overarching goal of “Developing a High Performing Organization”. Staff has developed the attached draft Advance Resignation Notice Policy that was designed to improve the efficiency and stability of the City’s workforce by encouraging employees to give the City advance notice of the intent to resign/retire. The purpose of this program is to begin the process of replacing an employee who is leaving the City as soon as possible after notice is received. Early notification of an employee’s plans also allows staff to fully consider the most effective way to re-fill that position based on the needs of the organization. By offering a one-time payment to employees who provide the City with an advanced resignation notice, the City hopes to reduce the time that a position remains unfilled and reduce the costs associated with addressing staff shortages while also maintaining excellent service to the public. The key elements of the program include: 1. All regular employees who are in good standing and who have been employed with the City of Rosemount for at least two years are eligible to participate in the program. 2. Expecting the employee to assist with training their replacement (where needed). 3. Limiting annual leave usage during the advance notice period. 4. Reserving the City’s right to refuse to enter into an Advance Notice Agreement with an employee. 5. Allowing employees 10 days to rescind their resignation submitted under the program. 6. Payment for a 90-day advance notice is $750; 120-day advance notice is $1000, and 180-day advance notice is $1500. 7. Payment isn’t made until on or after the final day of work. We anticipate that approximately three employees may take advantage of this program in the next year at a direct cost of up to $4500. In addition, there may be some overlap in salary and benefit costs due to the new hire starting work prior to the final day of the employee they are replacing. Staff has found that the ability to recruit and hire immediately, and even creating a small overlap of service (within some roles), is key to maintaining the high level of customer service and quality work that our residents have come to expect in our growing community. RECOMMENDATION Staff recommends approval of the Advance Resignation Notice Policy effective January 1, 2022. City of Rosemount Policy 10.25 Advanced Resignation Notice Policy Number 10.25 Purpose The City’s Advance Resignation Notice Policy is designed to improve the efficiency and stability of the City’s workforce by encouraging employees to give the City advance notice of their intent to resign. The purpose of this program is to begin the process of replacing an employee who is leaving the City as soon as possible after notice is received. This will reduce the time that the position remains unfilled. Eligibility This program is available to active regular full-time employees who are in good standing and who have been employed in a regular full-time position for a minimum of two years. The City reserves the right to not replace any employee who resigns, and/or to modify the position and duties prior to hiring a new employee. This decision will not affect a current employee’s eligibility for an Advance Notice payment. Notice & Use of Leave In order to be eligible for an Advance Notice payment an employee must give at least 90 calendar days notice to the employee’s Department Director before his or her last day of work. The last day of work is defined for this program as the last day that an employee will be actively working for the City. The City reserves the right to approve or deny requests for use of accrued Annual Leave during the 90 - 180 day period. It is the policy and intent that an employee requesting an Advance Notice Incentive remains actively working for the City and limits the use of benefited time off during the final 90 - 180 day period. Leaves of absence will not be allowed/approved beyond the employee’s final day of actual hours worked. City Expectations In order to be eligible for the one-time payment noted below, the departing employee will be expected to train the replacement or new hire to the extent possible by transferring knowledge and preparing documentation of the position as necessary. Agreement Acceptance The agreement must be signed by the employee, the City Administrator, Department Director, and Human Resources to be effective. The City reserves the right to refuse to enter into this agreement with any employee. For purposes of this policy, the term day(s) shall mean calendar day(s). Payment The City will provide the following one-time payment for advance notice: Ninety (90) days: $750 One Hundred Twenty (120) days: $1,000 One Hundred Eighty (180) days: $1,500 Payment will be made on or after the employment termination date. Payment will not be made if the employee or the City rescinds the resignation. Payment is subject to taxation and required deductions. Rescission Period An employee has ten (10) calendar days from the date the employee signs the agreement to rescind the Advance Resignation Notice. After the City has accepted the resignation and after the duration of the Employee’s 10-day rescission period, the resignation become irrevocable and the Employee may no longer rescind it without the City’s agreement to either permit rescission or defer the resignation. Refusing to accept the Advance Notice payment will not void the Agreement. In the event the Employee breaches this Agreement by terminating employment with the City in advance of the agreed upon resignation date, the Employee forfeits all eligibility for any advance resignation incentive. In addition, the Employee’s separation from employment may be considered by the City as “not in good standing” and this determination may be relayed to the Employee’s prospective employers. Breach of the Agreement may also serve as basis for ineligibility from future employment with the City. If a qualifying Family/Medical Leave Act (FMLA) event occurs during the effective period (90-180 days) of the agreement, such event shall be characterized as breach for good cause and the City shall release the employee from the agreement and disqualify the employee from the incentive payment. Effective Date This policy will go into effect on January 1, 2022. Approved by: City Council Date: October 19, 2021 Advance Resignation/Retirement Notice Date: ______________________________________ To: ______________________________________ (Department Director) From: ______________________________________ (Employee) Re: Voluntary Resignation/Retirement Notice I, ___________________________, voluntarily resign my position of Print Name _____________________________, with the City of Rosemount. Job Title My last day of work will be: ____________________________________ (termination date). By signing this document I am agreeing to the terms and conditions of the City’s Advance Resignation Notice Program. I understand that in order to be eligible for an Advance Notice payment, I must give at least 90 days notice before my last day of work and that any payment will be based upon the actual number of calendar days elapsed between the date of this notice and the last day of work. I also understand that in signing this contract I am agreeing that there will no longer be a position available to me after the agreed upon termination date. I understand that I have ten (10) calendar days from the date I sign to rescind this resignation. A rescission must be in writing, dated, signed, and delivered to Human Resources, City of Rosemount, 2875 – 145th St W, Rosemount, MN 55068 within the 10-calendar day period. After the 10-day period my resignation is irrevocable, unless rescinded by the City. ____________________________________ ___________________ Employee Signature Date Resignation/Retirement Acceptance ____________________________________ ___________________ Department Director Signature Date ____________________________________ ___________________ Human Resources Signature Date ____________________________________ ___________________ City Administrator Signature Date Notice Payment eligible for:  90 days  120 days  180 days