Funding Contingencies for EHRA Non-Faculty Appointments

To implement a funding contingency, the funding contingency must be included on the letter of appointment or reappointment prepared by the Department Head and provided to the employee.

The following clause or substantially similar language is included in all EHRA non-faculty appointment letters for appointments with a funding contingency:

“This appointment is contingent upon the continuing availability to (the department name) of funds appropriate for the payment of your salary from sources other than continuing state budget funds or permanent trust funds. If at some future time these funds are unavailable, your appointment may have to be terminated; this is the meaning of contingency clause.”

A funding contingency permits early discontinuation of an EHRA non-faculty appointment due to a loss of funding. In these instances, the normal notice requirements for non-reappointment per EHRA Non-Faculty employment policies are superseded.

While this notice may legally be accomplished without prior notice, departments should attempt to provide a minimum courtesy 30-day notice whenever possible.

All terminations due to activation of a funding contingency should be accomplished in writing to the employee by the Department Chair/Head and be copied through normal administrative approval channels. HR Representatives can find an End-of-Appointment-Due-to-Loss-of-Funding letter template in the HR Community Toolkit in the Form section > EHRA Non-Faculty Forms toggle.

All terminations due to activation of a funding contingency must be approved by the Office of Human Resources prior to the employee being notified.