October 24, 1950: Number 120

;IL[TARY LEAVE POLICIIES OF THIRTY-FIVE SELECTED COMiPANIES. OCTOBIR, 1950

United Nations military action in Korea and other international

developrments have acted to accelerate expansion of the armed forces of this

country, making it necessary to draft rien nineteen to twenty-five years of

age and call to active duty substantial numbers of reservists and members of

the National Guard. P±any companies had but recently adopted "peacetirme"

military leave policies, designed to conmply with provisions of the Selective

Service Act of 1948. Such policies contemplated only short absences of

reservists and national guardsmen for annual training encampments, and the

loss of but a few employees through draft and enlistment. To what extent

the 'korean affair woul:d eventualiy alter this situation was not immediately

apparent, and companies were hesitant about a,acpting the kind of policies

that were in effect when the country was engaged in a full-scale global war.

Althlough what is ahead is still by no means clear, an increasing number of

eulpliyees are being taken by the armed forces, and military leave policies

undo- Lbtedly will have to be more definitely geared to a wartime or semi-

war-time situation.

With a view to finding a possible pattern, Industrial Relations

Counselors, Inc., has made a study of the military leave policies of some

thirty-five companies. The salient features of these policies are summarized

in Exhibit A. The select group of companies covered does not, of course,

constitute a representative sample, but the policies of other companies., as

reported in the press and otherwise., all seem to fall within the range of

policies here described.

ADDITIONAL COPIES OF THIS MEMORANDUM ARE AVAILABLE TO CONTRIBUTOR COMPANIES ON REQUEST. COPIES ARE AVAILABLE TO OTHERS AT $1 EACH.THE TEXT MAY BE QUOTED OR REPRODUCED IF CREDIT IS GIVEN TO INDUSTRIAL RELATIONS COUNSELORS, Inc.

2

In all cases included in this study, the re-employ3nent rights of

employees who leave to enter the armed forces are in conformance with the

provisions of the Selective Service Act of 1948 and are spelled out in much

the same language. While the act extends re-employment rights only in the

case of a first enlistment of not more than three years' duration, some com-

panies accord the same rights to all employees enlisting for the first time,

so long as the term of enlistment is the minimum one prescribed for the

particular service which the employee selects. This provision takes cogni-

zance of the fact that the Navy and the Air Force now require enlistments

of at least four years, and assures the same treatment for all the company's

employees regardless of the branch of service in which they enlist.

The principal interest of employers centers around those elements

of military leave policy not covered by law, such as, the payment of cash

bonuses or adJustment allowances, allowances for dependents, and the status

of individual employees under various company benefit plans during military

leave. The results of the IRC analysis with respect to these features of

company policy may be sunnarized as follows:

1. Cash Bonuses and Dependents' Allowances: Twenty-four of the

thirty-five companies covered by the study give some form of cash bonus or

allowance to employees leaving for service, in amounts ranging from one week

to two months of normal earnings. Eight of the thirty-five companies

(including seven of those that give a cash separation allowance) pay con-

tinuing allowances in the case of employees with dependents, in amounts

varying from the difference between one-half company pay and government

pay to the difference between full company pay and government pay and

allowances. (Some companies mention "all" allowances, which would include

reimbursement of expenses in the form of travel allowances; others take

3

account of all allowances with stated exceptions; still others specify the

allowances considered.) Twenty-seven of the companies, including ten of

those that give no cash separation allowance, make no provision for con-

tinuing payments of any kind.

2e Sixteen of the thirty-five companies

cancel emnployee coverage.1 Three of these sixteen companies agree to pay

the premiums for an equivalent amount of National Service Life Insurance

for those who take out such insurance. Fourteen of the thirty-five comm

panies allow coverage to continue for periods ranging from two months to one

year following the date of leave, with some of these companies paying all

premium costs for the period and others requiring employees to continue their

regular premium payments. One of these fourteen companies continues group

life insurance for sixty days and thereafter pays for an equivalent amount

of National Service Life Insurance; another,in addition to pemitting con-

tinuation of coverage for three months, reimburses employees for one yearts

premums for National Service Life Insu.ance in any amount up to the

equivalent of their company insurance. Four companies permit coverage to

continue for the full period of service, with three of them paying aU

premium costs and one requiring employees to continue their regular premium

payments. One company makes no mention of group insurance.

3. Other Insurance: Accidental death and dismemberment and acci-

dent and health policies are almost invariably cancelled.

H Fourteen of the thirty-

five companies either do not have this coverage for employees or made no

1The term "cancelled"is used for provisions that terminate insurance

(1) at the end of the month leave begins, (2) thirty-one days after leavebegins, or (3) at the end of the month following the one in which leavebegins.

4

reference to it in their leave policy statements. Of the remaining twenty-

one conmpanies, six suspend coverage immediately or at the end of the month

following the date of leave; eight permit employees to continue coverage for

their dependents during the full period of leave if they pay the regular

premiums; six agree to continue coverage for dependents for the full period

of leave at company expense; one has different plans covering employees 4t

different locations, and continuation of coverage for dependents varies in

accordance with the terms of thie respective plans.

5 Retirement lans: Fifteen of the thirty-five companies suspend

all contributions and "freeze" tho account of the employee concerned as of

the date leave begins. Eleven companies agree to make up both employee

contributions and company contributions; this is done either on a current

basis during the leave or upon the return of the employee to active service

with the company. It is expected that several other companies will even-

tually apply this policy, but some will probably defer any decision or

announcement about it, as durinig World War 11, until the end of the emer-

gency. One company permits employees who are reinstated within five years

to make up within a period of six months thereafter all or part of their

contributions that were suspended during military leave; where the employee

elects to do this the company will also pay its contributions to cover the

period of leave. Three companies having noncontributory plans provide that

credits will accrue during military leave, thus assuring employees upon

retirement the same pension benefits they would have received had their

employment been uninterrupted by the period of leave. Four companies make

no reference to their retirement plans in their policy statements; one

com4pany has no plan.

5

6. acat,ions: It is interesting to note that eleven of the

thirty-five companies include in their policy statements provisions govern-

ing the vacation rights of employees in the year of their return from military

service. Seven of these eleven companies stipulate that returning employees

will be erntitled to full vacation privileges in the year of their return,

just as though they had been continuously employed by the company. A imum

employment period of four weeks, one month, forty-five days, and ninety

days, respectively, is required by four of the seven companies before return-

ing eraployees are eligible for their vacations. One other stipulates only

that the employee shall have returned by December 15 to get a vacation for

that year. Four of the eleven companies provide that time in military

service will count the same as company service in qualifying for vacations

but that no vacations accrue during the period of leave.

In nearly all cases the application of the leave policy is limited

to regular employees or employees who have completed six months or more of

company service. Wherever insurance or pension benefits are involved,

coverage and contributions are figured during the period prescribed at the

rates in effect on the date leave begins, and, with one exception, benefits

are extended only to those who are participating members of the particular

benefit plans at the time leave is granted.

Oil Industry

year or more of s* lot 2 mouhs Pay. I1yr--or moeof servces sreg pay los I rl .,or .0,.Of srrio aspl4eeoNW I ye o_r no" of *ervisevie pws _.bm onep-al copy pay. Oooaie 'b pWing u weparto prodg. oontl at ow aW .9

2 6 sOate or more of s*wcot I month$* W 6 amth or aweo of smoos aftr fnrt 6 rOlte or aweo of servoot 'contad at Jo _wtion.3 Ume servc p. 30 day of l*r, half pay Ise slorf eoWIla QZP4M

S6 matkw tO I year of sorwlcos I umth@ 3. yew or no" of services rerl pay Ises BWoy* -a cootl for 90asty p1i No mention,-W sorvce pay or one-Wf pay or sae his part of prodv In advance.

I yer or more of *irlos 2 amtha pa. amot mploe sav depenet, whichwr

6l yer or no" of servics 1 mouh's pay |1 yr or moer of * rviees reglr pa los 0aOeoled>. |Oacell d.*efco pay or one-bl pay or smt _fiyo gav depm4ot, whhear

7 Lose t1 I_yer of srvices I thle pay Ioni. |a e lntd at cpa expense for 6 moths, 0ontine at eoop z

I ye or mr, of sorwioot I mohlo pay(Proposed pr w1 lostartpo I ioathe pa o rotaa tsapproa) to oomps after I year or more of mitr

86 samte or more of service 2 onthsB pa. Zone. CandBlde. aOontnud at o°Way a

9|Ronis. Noneo. Oanceolld. |>aploeeo ma eontim atc

10 zone. z5one. Canedida. |Je u_tloa.(Rwlsow bdtMconsdred)

J1 one. None. Neloye m oontne for 2 sstbs follown MM1yG ma ontinue atsonth leav bols by pWn i part of

(A nwpolicy Is rnde

oonsiteration)~~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ tS tsu r

12 Los tha 6 satkw servics one-al None. Cancelled. No mtion.sosth,a ay 6 sout or more of isvlo tplGar gi-w

6 muto toeO year of se*col IL southlo mplre allowaneOtocover 31 yer's pa-pW Inlusive of vacation VW.-m for Natlao Service Life Iewao In

I yer or noros of serice I athle py amut equivaen to oomp nonotrlEm

13 [1ye or mor* of *errie zone|Janciaelled 0onatinud *teoupWNo deadnt, 2. wca pay atr eaeloys entrs

wIU d.__W, 1selltheoW.| | *e~~~~~~~~~~~~~~~~~~sovio, or util - .le

1I year or mre of ser^ot1sviehs month . zoe WlO Yomt OG10for 3 mth brieri Soloe ar otinu athi part of 1_ola

Oo°an rdlbwss mploye for I yearlspradvs for liatioa geclo Life lSa

. ~~~anceIn amut up to equivaen of hil | | e~~~~~~~~~~~~~~~~~~~~~~o,l ny Inurneo..

No dopen&mte 6 mmtho to I ye of s*v None, Cano1d,d llo ation.lo*, I wes Wqg I yer or more of aoO0W VWBfOr OqUITIU aSIPt of

Cna tentatie) service, 2 wdo par NatonloBervce Lifo Insoam.Wit d^epedne 6 osthu to I yew ofSeric, reglr pay lose Service p& for.6 weksl 1 yer or more of seric,smfor 12week.

16 More th n I er of service: 2 wedo pay zon. Uncalled. |&Vlays eWonti *e at

17 NXone. pay losIservieo pay. Caneolld. [Gontlaud at eooW *z

Tho term OcnoleddIs usd for prorlsostht temnto la aeo(1) at tbo md of the mouth 1el" Udnts, (2) 31 day after lev bgns or (3) at the endf of the mouth follear

trit for ig_dLat Retlr_n Plan

I OAore,N Ordlits ffso.

Ordits frosnox when pwictt r t ,soompW _plos ownad oase cnrltioasto cover perod of leavo.

OroUita froson.

Jlor e_loyee of I yer or more of service wodoe not withda, coma p ow andemploye oontrlbktlons.

too if pulcpt does not wltbrw an I nott rbted before retiremn, oompn vupa ow an mloyoo contrbtions to coverperiod of leav.

"". ~~~If aricet_ doe not witbm, compsP"ow and _loyo oontribatione oowPOWstrts cootrilmA t for those wbo

MR oOVOSO ocatia ov contrbLtlon If participant ha 6 moths or mor.e of servce,ooxw also p eploye contributions.

PMOXPons*redits frosen.

*po. O~rodlts frozen..

me for 21.am s to acue for not more tb 60 monthsL1tu seric, ,(n0nooatrIbutory Pla)..0 leas dUltawyFee r tur toA to sortest.Dv xpense* Oredits acreovdr nocontrilmtory miimn

. rdltts dr contributory U froze. Ifo o I1 reistated rithbn 3 yer an

ontrbtlXtos withi 6 months thers-ater for all or part of th porlod oflmol, coyp will pay Its contributionsfor saepriod.

as. Credits frosent whe participat retun,eopypy ow and sloye contribu-tions to ovr porlod of leav.

La te. oeD In whlh leave bein.

AXAT8I 07 MIITR nIT PMoIN oi- TUT-ZMm Oof , ,om. 1950

IlBIIf A (coOtE*gd)

°°V | c~~~~as BotL_atymt |ontlunng Prete for _qwdon e t Grovp Afo Inwae | o ut" an SurVeal. Bea

other Indvaries (Oontlue)

NXo depndetu I v"l PW lone.| Cotlant &t copWezense for 2 aths. No _atlon.WiLth dopmdntt 1 week's V. and InaddtIo, half VW for 3 ents.

19 |1 soth@@I es pa.Ifoe Oentie at compw ez* s for 90 day. Various arrag mts, uz

20ome. lone. Oaolled. flttvl bonoft associatloed.

21 "vefrom I week' W for 3 to 6 eabl None. aOntnvd at oeogmy ezps for 60 lo0 ntlonsoM to 2 mnh ISa or ow 5 Je@z

22 Jioeo. Zone* Oau#old. If s"loyee continues ean°°puy W for *gqulvvm mvt of als do* as*o.

l | | B~~~~~~~~~~~~~~~~~~~~ltteol Service Life Insurnce

23 6 oamthu to I yar of serics I wekic@ Nons,* aOntnxw at com y u o for 6 sostb Oanclld.

lyear or more of s*roce 2 weks p.

24 | or mor yea of ser Loe 1 weekle pay lone. |nCeelled. |Caneolled.

25 6 months or noro of s*icoes None. Oancelledo No tlon.So deenets, reglar pa lose servicpW for 30 dss.

|With depndets, sa for 90 ds. |

26 1JnO Oon|Cnttme at compa ezpons for 90 d. |ployse my continuetat

27 6 months to I yea of services I month's 1 year or sore of service: regular W los p<Z"oys oonxtnu for 3 mt,s br pain o metion.pM.owlo m, or one-haf W, or "n M part of lwe_to In adva.

I year or nors, of servlcot 2 monts' p. amut oloyboC doepmet whchvr| | ~~~~~~~~~tolmt.

28 None. Noneo. Sploy wyo ntnu for 90 dasb pwlae Oancelled.I | | bl~~~~~~~~~~~~~~~~~~~~hs part of promium

29 a our "aoyeW s bompn pa ose .mic NCeont'md at c°°Vm ozos for 2 onths. Oontinued at compn zporpWfor 3 southal *ino I wath's payV

differenceI payW for those with 6 to 8ebJl*6rlo to 3 'nka dffernc in

pyfor 12 xonts$ servce an aver,

30 None.NoiL. oontimd 60 da. orZb °°p pVWo lo _|tlon.for equvaen a_aun of Jktlona fervi

31 6 mato to yeOar of "rvloes I vook Xs .W OO Oamlld. uloy m continue atIlyear or oro of services 2 wa sme8.

32 N one. None. Caclled. O ontinnwd at °°Wpm expi

33 6 motOs or soro of services I mouth$ 9 a. ions. So metion. lo awion.

34 1 to 2 years of serviost 2 weeks pays None. Oonatind at °°Wpm oWeao for I ya, but So _ltion.2 yars or moro of services 3 weks pa. caclld If wa s doluard.MaXMI on bai of a*m slr oi $5,C000| '

35 NJ.|lollo| COaneod. | Cnelled.

(Poposd plaaats approval).

byd Ids"trU Rtions Oounsors9 In., as aSttzbot to Indutrlua Relations Xlzo; lo. 1.20)

It

.nit for Depwste| Retiremet Pia

|Credlto froze.

or the two of Croedt frosszt whe p"icipat retws,oOmM W ow and mploypo contrlbuttoto covr period of leave.

af mebershp Oredl frosen when partilcpant retum,GEoW pW ow and _plore contributionsto cvr period of leave,

Oredlts frozen.

trlbutiona, co¢ W redlts frose.

Oroflts frose.

Credits fros'Sn

so° mtion.

>sm epse. Credits frosen

Credits froze.

Credits accrue during per:lod of leave (non-contributory pla).

"@. |C~redits frozen.

so mtion.

NM .4nmeo utlon.

32o. Uployes bs booceo of (1) witbrwing,(2) accptin pai-up anaulty to begin atage 65, or (3) bein roits frozen.CSbeo of 011" or 020 results in lose ofsplemntl and inimu pension rights.

No metion.

CrodlS uaccrue drin porlod of leave (no-contributory pla) .

If participant does not withdra, compnpW ow and _ployes contributions.