No longer employed, treated with contempt around university (7)
I believe the answer is:
disused
'contempt around university' is the definition.
I can't judge whether this defines the answer.
'no longer employed treated' is the wordplay.
'no longer employed' becomes 'dis' (I can't explain this - if you can you should give a lot more credence to this answer).
'treated' becomes 'used' (using is a kind of treating).
'dis'+'used'='DISUSED'
'with' acts as a link.
Can you help me to learn more?
(Other definitions for disused that I've seen before include "No longer observed or practised" , "Derelict" , "Idle" , "Eg, like abandoned railways" , "Neglected" .)