Leave Use/Cash Outs on Termination

Larry T. Ellis, Director

In an effort to assist you in handling leave use and cash outs when one of your employees terminates employment with the university, University Personnel Services is happy to provide you with the following information.

Annual Leave
Before employees leave university employment, management should carefully consider whether to allow use of annual leave in conjunction with the employee’s last day on campus. Employee termination dates typically are the last day an employee is physically present at work. University policy states that employees may receive a lump-sum payment for unused annual leave up to the year-end maximum of their pay plan. USPS employees must have at least six months of continuous state service to be eligible.

On occasion, employees have been offered the option of using accrued annual leave at the end of their employment after they no longer are performing their position duties. In this circumstance, the termination date may be extended until all, or a portion of, the annual leave is exhausted. Of course, this requires a mutual agreement between the employee and the department.

While discouraged, this practice currently is not prohibited. However, managers should carefully consider the additional costs associated with this option: contributions to medical and life insurance, social security, and the Florida pension plans; annual and sick leave accruals; payment for holidays and possible pay raises; possible medical insurance claims; and recruitment time and training required for replacing the departing employee.

Managers can achieve consistent treatment in the workplace by not allowing the use of annual leave after the employee ceases to be physically present at work. If the option of extending the termination date is determined by the Dean, Director or Department Head to be in the best interests of the university, managers should ensure that the “Employee Exit Checklist” is completed, all university property is returned, and access to computer systems has been terminated on or before the last day the employee is physically present at work. The Request for Leave form(s) for the use of this leave should be approved at the appropriate supervisory level.

Sick Leave
According to Florida Statutes, Section 110.122, state employees with 10 or more years of state service are eligible, upon termination of employment, to receive compensation for sick leave hours accrued but not used. Use of sick leave balances prior to termination are subject to University of Florida Rules, 6C1-1.201, Florida Administrative Code, where medical certifications are required for medical leaves of absence for longer than 15 workdays with or without pay. When sick leave use exceeds three days or where a pattern of use has emerged, it is strongly recommended that medical certifications be requested since this scenario is more likely to occur at a time of termination.

If you have questions or require more information, please call Sandra Lovegrove, Central Leave Administration Coordinator, at 392-5732, or send e-mail to sandra-lovegrove@ufl.edu.