Payout of Vacation, Vacation Carryover, and “Banked Leave” Practice Directive (Policy #321)

This document serves to establish guidelines for the administration of payout for vacation, vacation carryover, and banked leave (formerly called Annual Leave Reserve Account or “ALRA”) upon movement, retirement, or termination from the University of Wisconsin-Whitewater.

Office of Human Resources

A. Movement to New Appointment

1. When an employee moves to another State of Wisconsin agency, the movement of currently earned vacation, vacation carryover and banked leave is at the discretion of the hiring agency. Any leave that is not accepted by the agency will be paid to the employee as a lump sum on his/her final check.
2. When an employee moves from one UW System institution to another or moves to a different appointment within the same UW institution any current vacation earned during the calendar or fiscal year shall transfer to the new leave-eligible appointment.
   1. UW-Whitewater will not accept carryover vacation and/or banked leave liability for employees transferring from another UW institution or State of Wisconsin agency. 

Refer to UW System Administrative Policy 1210 section F(6)(b) for additional eligibility provisions and balance determinations.

B. Resignation* or Retirement (*without transfer to another UW institution or State of Wisconsin agency)

1. Current employees who submit their resignation notice no later than February 15, 2020 may be eligible for payroll extension of a maximum of 480 hours, based on department financial ability and/or discretion of the supervisor approval, for the use of accrued and banked leave, so long as the requesting employee’s last day on payroll is not later than June 20, 2020.
2. Beginning February 15, 2020 any employee who resigns or retires from UW-Whitewater, or whose employment ends as result of termination for cause or layoff, will be required to take a lump sum payout of accrued vacation and banked leave at the conclusion of the last date physically worked at UW-Whitewater.
3. Financial planning opportunities will be available to UWW employees. 

The UW System pool will be used to pay for the cost of banked leave that is taken in a lump sum.

Per UW System Administrative Policy 1210, to be eligible for a lump sum payment of vacation and/or banked leave at termination, the employee must be expected to remain terminated from all UW System leave-eligible employment for at least 30 work days.

The formula for lump sum payouts is established by UW System Administrative Policy SYS 230.

First Approved: January 13, 2020

Questions regarding the interpretation of this policy should be directed to:

Chief Human Resources Officer
Phone: 262-472-1409
Email: putlandc@uww.edu