Settlement Discussions

One way to resolve a termination is through a settlement. Settlements are contractually binding agreements executed by an authorized university representative and the terminated employee and their advocate. All settlements are reviewed by campus counsel and approved by the Chancellor and Campus Provost/Executive Vice Chancellor.

There are many reasons to consider settlement during the termination steps or subsequent complaint processes. Settlements may create an easier transition for both the university and employee, particularly when they are in the best interest of both parties. In consultation with labor relations and campus counsel, a manager or supervisor continues to assess a case’s risk profile, which may change over time. A risk profile is an analysis of how the facts justifying a termination compare to any risks or allegations that arose during the termination process and the time and cost of litigating a final termination before an arbitrator.  Settlements may be discussed when the cost and risk of litigating a case exceeds the benefits of proceeding with arbitration. 

If a supervisor or manager wishes to engage in settlement discussions, the first step is to contact labor relations. Your labor relations analyst will work with you to identify settlement terms that are amenable with your department’s needs and budget. Unless otherwise discussed, departments bear the cost of all economic settlement terms, such as severance pay. 

Because settlements are negotiated between two parties, the time to reach a settlement may vary from a few days to a few weeks. Once terms are agreed upon between the employee and the department, both parties will sign a binding agreement.