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Good afternoon,

The UNC System Office has recently released some changes, clarifications, and additions to the SHRA Sign-on and Retention Bonus policy. A summary of these updates is listed below:

  • If a bonus is paid in two installments, the policy now requires that the period of consecutive service (the time an employee must work to fully earn the bonus without any risk of repayment) ends at the time of the final payment.
    In order to keep a consistent period of consecutive service at one year, bonuses paid in two installments will have their second installment paid after 12 months. In practical terms, this means the second payment will be entered for the pay date that is closest to:

    • One year after the start date for sign-on bonuses.
    • Payment of the first installment for retention bonuses.

    For bonuses paid in two installments, no more than two-thirds of the total bonus may be paid in the first installment.

  • One of the allowable types of a retention bonus is for employee(s) assigned to a special initiative of the University where their special skills and understanding of the initiative are critical to its successful completion. A “special initiative” is a defined project with specific goals, an expected beginning and end, and dedicated staff who spend a substantial amount of their time on that project.
  • Employees may decline to receive a sign-on or retention bonus, and it is not a condition of employment that they accept one.
  • Failure to meet the period of consecutive service shall not serve as the basis for disciplinary action against an employee.
  • Employees are not subject to the repayment requirements of the program if their failure to meet the period of consecutive service is due to any of the following:
    • Death or severe illness requiring hospitalization of the employee or the employee’s parent, spouse, sibling, or child.
    • Separation because employee was unable to perform all the position’s essential duties due to a medical condition.
    • A reduction in force.

The System Office has provided a bonus request form that must be used for all proposed bonuses going forward. A copy of this form has been attached to this communication.

We have also attached an updated version of the repayment agreement, which includes the exclusions from repayment. These documents have been updated in the Manager Toolkit, and we have incorporated these changes into the SHRA Sign-on and Retention Bonus Policy.

If you have any questions regarding these changes, please contact your assigned Classification & Compensation Consultant.

Thank you,
Adam Beck, Sr. Director, Classification & Compensation
Noreen Montgomery, Sr. Director, Employment & Staffing


Categories: HRO
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