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Leave Payment

When an employee separates from the university, you'll want to make sure that they get paid for their unused leave and holiday time. Refer to the following resources for help in the process of paying out leave.

Eligibility for Leave Payment

Employees who separate from the university or transfer to another TEXAS state agency may be eligible to receive payment for the following types of leave.

Vacation (Annual Leave) Payment

If an employee transfers to another State of Texas agency with no break in service, the vacation (annual leave) balance will be transferred to the other agency, if the employee will be in a vacation eligible position at the new agency. In order to be eligible for payment of unused vacation, the employee must meet the following requirements:

Vacation payments must include payment for holidays that fall after the employee's separation date, provided the vacation and floating holiday balance is sufficient to carry them through the holiday, unless the employee will be in a non-vacation eligible position at the new agency. In this case the vacation balance is paid, but not the holidays that fall after the separation date.

Floating Holiday Payment

Upon separation from university employment or transfer to another state agency, an employee shall be paid for any unused floating holiday balance. If the employee is also eligible to be paid for unused vacation hours, this payment should be made on the same voucher. Floating holiday hours should be listed as a separate item on the voucher, and not combined with the vacation balance.

Sick Leave Payment

If an employee dies, their estate is entitled to receive payment for half of the final sick leave balance or 336 hours, whichever is less. The payment should be made using an electronic voucher (OV6), and a single voucher should be used to pay any vacation, floating holiday, or sick leave owed. Sick leave should be listed as a separate item on the voucher, and not combined with the vacation or floating holiday balances.


How to Pay Employees for Unused Leave

In order to pay employees for vacation, floating holiday, or sick leave, your department must create an electronic voucher. You should create the voucher as soon as possible after an employee's separation in order to ensure timely payment. If an employee separates from the university or dies, take the following steps to pay them for unused vacation, floating holiday, and sick leave.

Leave-payment Steps


When to Complete Vacation Vouchers

Your department should complete a vacation voucher immediately upon termination, separation or death. If an employee will be returning to State of Texas employment with no break in service, then you shouldn't process a vacation voucher—the employee should simply transfer the vacation balance to the new State of Texas agency.

After HR receives vacation vouchers, the payment is processed in the next semimonthly payroll. HR needs to receive vouchers prior to the appropriate payroll deadline in order for vouchers to be processed and paid out on time. You can find payroll-processing deadlines and check-release dates on the Payroll Services Web site.

Verifying Employees' Separation Dates

The ending date of the assignment is the official separation date. If the employee's assignment has not ended yet, contact the appropriate person in your department to make sure this is done. The separation date given on a voucher should match the ending date of the employee's assignment. If these dates do not match, it may cause delays in processing the voucher.

Leave Payment Checks

Leave payment checks will be distributed to employees the same way their previous payroll checks have been distributed unless employees make other arrangements with Payroll Services at the time of separation. Direct any questions regarding check distribution to Payroll Services at 512-471-5271.

Vacation Voucher Training

You can get training on the use of OV6 documents by enrolling in the class DE216- Payroll Vouchers, offered by the Office of Accounting.