Healthcare corp. comes up with a new hospital employment manual

Commonwealth Healthcare Corp. chief executive officer Juan N. Babauta has issued a new employment manual for Commonwealth Health Center employees that highlights, among others things, a policy on emergency workforce reduction and furloughs, including termination without cause.

Documents obtained by Saipan Tribune showed that Babauta informed CHC personnel about the new policy in a memorandum dated Feb. 14. The new employment manual replaces the existing rules and exempt staff and employees of the corporation from the application of the Commonwealth Civil Service Act.

Compared to the existing employment rules, the grievance, employment termination, and disciplinary and corrective action rules are largely new.

Based on the new CHC employment manual, the CEO can implement a temporary reduction in the number of employees due to lack of funds or work.

A furlough is an action placing an employee on non-duty and non-pay status because of lack of work or funds as determined by CEO or his designee and valid for 180 days.

A furlough that exceeds 180 days shall be considered an emergency reduction-in-force and shall be accomplished using emergency reduction-in-force procedures as defined by the manual.

“When it becomes evident that an emergency reduction-in-force [ERIF] must be made for the reason stated, the CEO shall issue a notice of ERIF. The notice shall explain why the action is being taken, and why alternative methods for reductions in expenditures and staffing were not taken. The notice is effective seven days from issuance or for a shorter period if designated within the notice,” the new manual states.

The new policy states that all employees included within the ERIF notice shall be terminated without reference to seniority, tenure, competitive levels, assignment rights, or any other methods. An employee whose employment was terminated by ERIF has no right to appeal the adverse action.

The new manual also authorizes the CEO to terminate employees with cause and without cause. Termination with cause refers to those based on an employee’s unsatisfactory performance or behavior on the job, while termination without cause will not be based on the employee’s unsatisfactory performance but instead on the fiscal situation of CHC. A 30-day notice for termination without cause is required and the decision is not appealable. For termination with cause, a notice within seven days is required and the decision can be appealed to the organization’s appeals committee.

The new policy, meantime, indicates that those who are terminated without cause or affected by the emergency reduction in force can be placed on a re-employment priority list for related positions. The new manual also outlines the specific appeals procedures for termination for cause, procedures on implementing disciplinary and corrective actions, and provisions on voluntary resignation and retirement.

Early this year, Babauta mentioned in several occasions a planned streamlining of the organization, including the enforcement of emergency reduction-in-force. Without proper legal guidance and procedures, Babauta said that this cannot be enforced.