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HR Policy and Procedure #81: Terminal Vacation Pay Revised October 11, 2013


Any regular staff employee with a full-time equivalent (FTE) of 0.5 or greater, and separating from the University, shall be eligible to receive compensation for accrued vacation leave which is unused at the date of separation, as defined in this policy.


  1. The employee must have successfully completed the new hire orientation period to be eligible for terminal vacation pay.
  2. The employee must separate in “good standing” to receive terminal vacation pay.
    Note: “Good standing” is defined as (a) the employee voluntarily separating from employment and having given and fulfilled the proper notice period for resignation or (b) the employee involuntarily separating from employment other than for reasons of misconduct or performance issues (see HRP&P 12.0 Separation from Employment).
  3. Terminal vacation pay will be paid in the event of the death of a staff employee.
  4. The employee will receive terminal vacation pay in the amount equal to the current balance of vacation as of the date of separation. This amount shall not exceed one year of the employee’s annual leave allowance.


The responsibility for accurately reporting vacation leave balances on the Employee Separation Sheet is delegated to the department head or designee. The official record for vacation leave balances will be maintained by the University’s centralized resource information system. The Vice President of Human Resources or the Human Resources Office of Employee Relations retains the authority to review and approve or deny terminal vacation pay.

  1. The department is responsible for determining eligibility for terminal vacation pay as outlined in this policy.
  2. The completed Employee Separation Sheet shall indicate the amount of terminal vacation to be paid.
  3. The payment for the terminal vacation leave hours will be charged to the University’s miscellaneous fringe benefits account.