Voluntary Separation Payment Program (VSPP) Sample Clauses
The Voluntary Separation Payment Program (VSPP) clause establishes the terms under which employees may choose to voluntarily leave their employment in exchange for a financial incentive. Typically, this clause outlines eligibility criteria, the calculation of payment amounts, and the process for applying to participate in the program. For example, it may specify that only employees with a certain tenure are eligible or detail how severance is calculated based on years of service. The core function of the VSPP clause is to provide a structured and mutually beneficial way for organizations to reduce workforce size while offering departing employees financial support, thereby minimizing the need for involuntary layoffs and associated legal risks.
Voluntary Separation Payment Program (VSPP). The Company shall offer Regular employees within an Adjustment Group, the opportunity to elect voluntary separation payments under VSPP. This offer will be in order of TOE. The number of employees who make such election shall not exceed the number of employees the Company determines to offer this alternative. Neither such determination by the Company or any other part of the VSPP Sections of this Article shall be subject to arbitration. Employees who elect to leave the service of the Company as a VSPP participant may receive, in combination with such benefits, a retirement service pension (if eligible for such pension) plus compensation for any accrued, unused entitlement time to which the employee is entitled at the time of leaving the Company. The Company will set the separation date(s) that are applicable to employees electing to separate as a VSPP participant. Any employee who elects to leave the service of the Company as a VSPP participant shall not have eligibility to the Recall Rights Provision outlined in Section 19.6 (I) of this Article. An employee's election to leave the service of the Company and receive voluntary separation payments must be in writing, and delivered to the Company within ten (10) working days from the date of the Company's offer in order for the employee to be accepted as a participant under the provisions of VSPP. Such election may not be revoked after the ten (10) day period. The voluntary separation payments elected in accordance with VSPP will be calculated as follows:
(1) One thousand one hundred dollars ($1,100) for each year of TOE (prorated for any partial year of service) to a maximum of twenty-six thousand four hundred dollars ($26,400), but in no event to exceed twice the base annual salary plus applicable differentials.
(2) Employees separated under the provisions of VSPP will be treated under the Separation Payment Guidelines outlined in Section 19.6(H).