Chapter 16

Leaves of Absence and Leave Benefits

16.07

PAID LEAVE PAYOUT AT TERMINATION

The following table provides a summary of UW-Madison's policy regarding how unclassified employees’ (faculty, academic staff, limited appointees) paid leave balances will be handled at termination of employment with the university.  Sick leave is not paid out to an employee at termination. 
For the full UW-Madison policy on paid leave, refer to Unclassified Personnel Policies and Procedures UPPP Chapter 16.02.
For the full UW-System policy on paid leave, refer to the UW-System Unclassified Personnel Guidelines UPG Chapter 9 and UPG Chapter 10.


Event

Policy

Resignation/ Retirement

The employee may elect to use accrued leave (vacation, vacation carryover, ALRA, and floating and personal holiday) to extend the end date of the appointment, or receive a lump sum payout of accrued leave at termination, at his/her discretion. *

Layoff/ Non-renewal (all reasons)

With sufficient notice in writing**, the employer may require the employee to use accrued vacation, vacation carryover, ALRA, and personal and floating holiday prior to termination. Remaining hours will be forfeited. *

Dismissal/Term during Eval

The employee will receive a lump sum payout of accrued vacation, vacation carryover, ALRA, and floating and personal holiday at termination.

*Resignation/Retirement prior to a scheduled Layoff/Non-renewal date:

If an employee receives notice of Layoff/Non-renewal for any reason, and was told in writing to use accrued leave prior to termination or forfeit the hours, then special payout rules apply if the employee elects to Resign/Retire prior to the scheduled Layoff/Non-renewal date. In this circumstance, at termination the employee will only receive a lump sum payout of remaining accrued leave that could have been used between the Resignation/Retirement date and the original Layoff/Non-renewal date. See UPPP 16.02 for further details.
Please note: an employee who Resigns/Retires prior to a scheduled layoff also may forfeit other layoff benefits. Contact the campus benefits office for more information: benefits@ohr.wisc.edu.

**Sufficient notice in writing must provide the employee with enough time in which to use the leave stated in the letter.  If the amount of layoff/nonrenewal notice does not allow the employee the opportunity to use all of their accrued leave (all types specified in the letter), then the employee will receive a lump sum payout for the remaining time.