06-1742 Model Employment Agreement for Department Directors

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SECTION 5. TERMINATION AND SEVERANCE PAY (New Employee or Employee with less than two (2) years tenure) (a) In the event the Employee is terminated without cause by the City Manager while the Employee is willing and able to perform the duties of the Director position, the City agrees, subject to the below conditions, to pay the Employee a lump sum payment equal to twenty-four (24) weeks salary at (his or her) base salary rate on the date of said termination and for accruals for vacation and sick leave allowable by the City for all other non -bargaining unit employees at that time. At the end of two (2) years service to the City in the Director position, Employee's severance shall be reduced to twelve (12) weeks salary at (his or her) base salary rate plus one week's salary for each completed year of continuous employment in the Director position at the time of termination, up to a maximum of twelve (12) years. Thus, the Employee, following two (2) years of service may then, again, accrue a maximum of twenty-four (24) weeks of severance pay, plus payment of accruals for vacation and sick leave allowable by the City for all other non - bargaining unit employees at that time. It is understood by the parties to this agreement that Employee would not, absent this Agreement, be entitled to receive any severance payment under the Charter, City Code and/or Personnel Policies of the City. If the Employee is terminated for cause, the City shall have no obligation to make the severance payment. or (Employee with two (2) years service or more) (a) In the event the Employee is terminated without cause by the City Manager while the Employee is willing and able to perform the duties of the Director position, the City agrees, subject to the below conditions, to pay the Employee a lump sum payment equal to twelve (12) weeks salary at (his or her) base salary rate on the date of said termination plus one week's salary for each completed year of continuous employment in the Director position at the time of termination, up to a maximum of twelve (12) years. Thus, the Employee may accrue a maximum of twenty-four (24) weeks of severance pay, plus payment of accruals for vacation and sick leave allowable by the City for all other non -bargaining unit employees at that time. It is understood by the parties to this agreement that Employee would not, absent this Agreement, be entitled to receive any severance payment under the Charter, City Code and/or Personnel Policies of the City. If the Employee is terminated for cause, the City shall have no obligation to make the severance payment. (b) In the event the City Manager reduces the financial benefits of the Employee in a greater percentage than the applicable across-the-board reduction for all City employees or, in the event the City Manager refuses, following written notice, to comply with any other provision benefiting the Employee herein, or the Employee resigns following a suggestion, whether formal or informal, by the City Manager that (he or she) resign, then in that event Employee may, at his option, be deemed to be "terminated" and, then, the Employee may resign and be deemed to be "terminated without cause" within the meaning of Section 5(a) of this Agreement. Such resignation shall be in writing and shall specifically designate the action that evidences the suggestion for resignation which matter shall be subject to determination by the City Manager as set forth in Section 6(d) (or 7(d) if Section 3 Relocation Expenses -Reimbursement is added to this agreement for new Employee [Director]).