1. (a) Actions covered. This part covers reduction in grade and removal of employees based on unacceptable performance.

2. (b) Actions excluded. This part does not apply to:

   1. (1) The reduction in grade of a supervisor or manager who has not completed the probationary period under 5 U.S.C. 3321(a)(2) if such a reduction is based on supervisory or managerial performance and the reduction is to the grade held immediately before becoming a supervisor or manager in accordance with 5 U.S.C. 3321(b);
   2. (2) The reduction in grade or removal of an employee in the competitive service who is serving a probationary or trial period under an initial appointment;
   3. (3) The reduction in grade or removal of an employee in the competitive service serving in an appointment that requires no probationary or trial period who has not completed 1 year of current continuous employment in the same or similar position under other than a temporary appointment limited to 1 year or less;
   4. (4) The reduction in grade or removal of an employee in the excepted service who has not completed 1 year of current continuous employment in the same or similar positions;
   5. (5) An action imposed by the Merit Systems Protection Board under the authority of 5 U.S.C. 1206;
   6. (6) An action taken under 5 U.S.C. 7521 against an administrative law judge;
   7. (7) An action taken under 5 U.S.C. 7532 in the interest of national security;
   8. (8) An action taken under a provision of statute, other than one codified in title 5 of the U.S. Code, which excepts the action from the provisions of title 5 of the U.S. Code;
   9. (9) A removal from the Senior Executive Service to a civil service position outside the Senior Executive Service under part 359 of this chapter;
   10. (10) A reduction-in-force governed by part 351 of this chapter;
   11. (11) A voluntary action by the employee;
   12. (12) A performance-based action taken under part 752 of this chapter;
   13. (13) An action that terminates a temporary or term promotion and returns the employee to the position from which temporarily promoted, or to a different position of equivalent grade and pay if the agency informed the employee that it was to be of limited duration;
   14. (14) A termination in accordance with terms specified as conditions of employment at the time the appointment was made;
   15. (15) An involuntary retirement because of disability under part 831 of this chapter; and
   16. (16) An action against a technician in the National Guard concerning any activity under 32 U.S.C. 709(f)(4), except as provided by 32 U.S.C. 709(f)(5).

3. (c) Agencies covered. This part applies to:

   1. (1) The executive departments listed at 5 U.S.C. 101;
   2. (2) The military departments listed at 5 U.S.C. 102;
   3. (3) Independent establishments in the executive branch as described at 5 U.S.C. 104, except for a Government corporation; and
   4. (4) The Government Printing Office.

4. (d) Agencies excluded. This part does not apply to:

   1. (1) A Government corporation;
   2. (2) The Central Intelligence Agency;
   3. (3) The Defense Intelligence Agency;
   4. (4) The National Security Agency;
   5. (5) Any executive agency or unit thereof which is designated by the President and the principal function of which is the conduct of foreign intelligence or counterintelligence activities;
   6. (6) The General Accounting Office;
   7. (7) The U.S. Postal Service; and
   8. (8) The Postal Rate Commission.
5. (e) Employees covered. This part applies to individuals employed in or under a covered agency as specified at § 432.102(c) except as listed in § 432.102(f).

6. (f) Employees excluded. This part does not apply to:

   1. (1) An employee in the competitive service who is serving a probationary or trial period under an initial appointment;
   2. (2) An employee in the competitive service serving in an appointment that requires no probationary or trial period, who has not completed 1 year of current continuous employment in the same or similar positions under other than a temporary appointment limited to 1 year or less;
   3. (3) An employee in the excepted service who has not completed 1 year of current continuous employment in the same or similar positions;
   4. (4) An employee outside the United States who is paid in accordance with local native prevailing wage rates for the area in which employed;
   5. (5) An individual in the Foreign Service of the United States;
   6. (6) An employee who holds a position with the Veterans Health Administration which has been excluded from the competitive service by or under a provision of title 38, United States Code, unless such employee was appointed to such a position under section 7401(3) of title 38;
   7. (7) An administrative law judge appointed under 5 U.S.C. 3105;
   8. (8) An individual in the Senior Executive Service;
   9. (9) An individual appointed by the President;
   10. (10) An employee occupying a position in Schedule C or Schedule Policy/Career as authorized under part 213 of this chapter;
   11. (11) A reemployed annuitant;
   12. (12) An individual occupying a position in the excepted service for which employment is not reasonably expected to exceed 120 calendar days in a consecutive 12 month period; and
   13. (13) A manager or supervisor returned to his or her previously held grade pursuant to 5 U.S.C. 3321 (a)(2) and (b).

[54 FR 26179, June 21, 1989, as amended at 57 FR 10125, Mar. 24, 1992; 57 FR 20042, May 11, 1992; 58 FR 13192, Mar. 10, 1993; 58 FR 65533, Dec. 15, 1993; 87 FR 67782, Nov. 10, 2022; 89 FR 25047, Apr. 9, 2024; 91 FR 5655, Feb. 6, 2026]