Common use of Compensation Upon Separation Clause in Contracts

Compensation Upon Separation. Accumulated (unused) sick leave at termination of employment will be reimbursed as follows: A. An employee separating from City service will be credited for up to 175 days (1,400 hours) of accumulated but unused sick leave. B. Separation pay is equal to the employee’s hourly rate of pay times the number of hours of compensable accumulated sick leave times a percentage credit. The percentage credit will be calculated with the following formula with a minimum credit of 5%. The maximum credit would be 48.75%. C. In case of death of an employee, severance pay for accrued sick leave shall be paid to the employee’s estate or beneficiaries in accordance with State law. D. The above provisions shall apply only to full-time employees who have completed one full year of service with the City of Xenia. An employee with less than ten (10) years of service is not eligible for severance pay for accumulated sick leave if the employee is dismissed from employment for unlawful or criminal conduct. An employee with ten (10) years or more of service shall be entitled to compensation for accumulated sick leave at his/her termination of employment, irrespective of cause, in accordance with the provisions of this section.