P.L. 78-525, passed in 1945, provided for lump-sum payment of accrued annual leave to preclude use of terminal leave.
Definition:
Occurs when an employee takes annual leave immediately prior to
separation from Federal service when the separation is known in advance. Administrative
authority to grant an employee annual leave immediately prior to separation from
government service, when it is known in advance that the employee is to be separated, is
limited to cases where the exigencies of service require such action. (C.G. B-164371).
Exceptions:
Terminal leave rules do not apply in the following situations:
- Employee takes annual leave prior to separation, but is present for, and performs duty on his/her last administrative workday (C.G. B-223876).
- Employee takes accrued annual leave during the final hours of the last day of employment before separation, providing the employee substantially worked the entire final pay period, including part of the last day (C.G. B-190374).
- Employee is on sick leave pending approval of disability retirement application.
- Employee is involuntarily separated due to reduction in force or declination of transfer of function may use accrued annual leave to extend the separation date to attain first eligibility for retirement annuity and/or FEHB annuitant coverage (5 USC 3502, 6302, 8905, and 5 CFR 351.608).
