Severance Pay: DOD Not Exempt From Paying Benefits to Greek Employees
NSIAD-91-223
Published: Jul 22, 1991. Publicly Released: Aug 05, 1991.
Skip to Highlights
Highlights
Pursuant to a congressional request, GAO: (1) analyzed whether section 311 of the National Defense Authorization Act for Fiscal Years 1990 and 1991, which prohibits the Department of Defense (DOD) from making severance payments if termination of employment results from the host government's request to close or curtail activities at a U.S. base, applied to the closure of two military bases in Greece; (2) determined the amount of severance and incentive pay to which base employees may be entitled; and (3) analyzed difficulties in implementing section 311 and proposed ways to alleviate them.
Recommendations
Matter for Congressional Consideration
| Matter | Status | Comments |
|---|---|---|
| In view of international agreements in several countries obligating the United States to make severance payments and the possibility of lawsuits and labor unrest, Congress may wish to consider eliminating section 311. Alternatively, if Congress wanted to effectively restrict severance pay, it could prohibit DOD from using any appropriations for severance pay at specific bases, such as Hellenikon. In the future, to determine whether severance payments are warranted, Congress could require advance notification of the DOD planned action and conduct its own inquiry, or require an executive branch report, on the circumstances of particular base closures. | The National Defense Authorization Act repealed section 311B, prohibited severance payments to Philippine national employees, and instructed the President to enter into active negotiations to have severance pay cost assumed by host nations by October 1, 1994. |
Full Report
Office of Public Affairs
Topics
Armed forces abroadCivilian employeesEmployment of foreign nationalsFederal regulationsInternational agreementsInternational relationsMilitary basesReductions in forceSeverance payBase closures