1. To allow every employee an annual vacation period of extended leave for rest & recreation; and
2. To provide periods of time off for personal & emergency purposes.

Legal Basis:
5 USC Chapter 63 (parts 6301-6306, 6308-6312)

OPM Regulation:
5 CFR Part 630 (Subpart A through C)

Earning Rates for Full-Time Employment:

• Years of Federal Service:
• less than 3 years: Earn 4 hours per pay period; 13 days/year
• between 3 and 15 years: Earn 6 hours per pay period; 10 in last pay period; 20 days/year
• 15 years or more: Earn 8 hours per pay period; 26 days/year
• Maximum Accumulation: 30 days/year

Earning Rates for Part-Time Employment with Established Regular Tour of Duty:

• less than 3 years: Earn1 hour for every 20 hours in pay status
• between 3 and 15 years: Earn 1 hour for every 13 hours in pay status
• 15 years or more: Earn 1 hour for every 10 hours in pay status
• Maximum Accumulation: same as full-time

Eligibility:

Permanent employees, and temporary employees who are serving under appointments which exceed 90 days, begin to accrue leave immediately, subject to the earning rates listed above. This leave may be used as it is earned, Intermittent employees (that is, employees with no scheduled tour of duty) do not earn annual leave.

Temporary employees who are serving under appointments limited to 90 days or less are entitled to annual leave after being currently employed for a continuous period of 90 days under successive appointments without a break in service. After completing the 90-day period, the employee is entitled to be credited with the leave that would have accrued to him or her during that period.

Creditable Service used in computing Leave:

• All civilian service that would be creditable for the Civil Service Retirement System or the Federal Employees Retirement System is creditable for annual leave purposes regardless of the kind of appointment on which the employee is serving or whether they are covered by retirement. A period of service is creditable for leave accrual as long as it is potentially creditable for CSRS or FERS purposes.
• Service for which retirement deductions were refunded for civilian service. Although refunded FERS service ceases to be creditable for retirement purposes, it remains creditable for leave accrual purposes.
• Temporary service performed after 1/1/89, although not creditable under FERS, is credited toward leave accrual rates.
• Intermittent employees receive credit only for the actual days or hours in pay (or work) status.
• Employees receiving injury compensation will receive credit for the entire period during which the employee was being carried on the agency's rolls in a leave-without-pay status and receiving compensation. If the employee is separated and reemployed after receiving compensation during a period of separation, credit is given for the period of separation during which the employee received compensation.
• Active Duty in a uniformed service may be creditable for leave accrual. The individual's discharge must have been honorable, under honorable conditions, or by transfer to the inactive reserves under honorable conditions. Special rules apply to retired members of the uniformed services and members of the National Guard.

Restoration of Forfeited Annual Leave:

Prior to 1973, leave forfeited could not be restored even if the lost leave was through no fault of the employee. P.L. 93-181, allows for the restoration of leave lost through an administrative error, sickness, or exigencies of the public business (5 U.S.C. 6304 (c)). Requests for restoration of annual leave that was forfeited due to an exigency of the public business or sickness of the employee will be considered only if the annual leave was scheduled in writing before the start of the third biweekly pay period prior to the end of the leave year.

• the date of restoration of the annual leave forfeited because of administrative error;
• the date fixed by the head of the agency or designee as the date of termination of the exigency of the public business; or
• the date the employee is determined to be recovered from illness or injury and able to return to duty.

The Comptroller General has ruled consistently that if restored leave is forfeited again, there is no legal authority for its further restoration. Any restored leave unused at the expiration of the established time limits is again forfeited with no further right to restoration. In addition, administrative error may not serve as the basis to extend the time limit for using restored annual leave. This is so even if the agency fails to establish a separate leave account, fix the date for the expiration of the time limit, or properly advise the employee regarding the rules for using restored annual leave absent agency regulations requiring otherwise. (See Comptroller General opinions B-188993, B-213380, B256975)

Indebtedness for Unearned Leave:
When an employee separates and is indebted for unearned leave, the agency is required to:

1. require payment for the leave,
2. deduct that amount from any pay due; or
3. forgive leave if separation is for death or disability.

Lump-sum Payment for Annual Leave:
On separation, an employee is paid a lump sum for unused annual leave. Accumulated annual leave includes:

1. the regular carryover balance from the previous year, if any; plus
2. accrued and unused annual leave during the current leave year, if any; plus
3. any unused restored annual leave maintained in a separate account.

An employee who enters on active duty in the armed forces may elect a lump sum payment for accumulated and accrued annual leave. After September 22, 1996, an employee who transfers from an installation subject to 5 USC 6304(d)(3), to one which is not, will be paid a lump sum payment for annual leave restored under section 6304(d)(3). (see 5 USC 5551(c))

On August 25, 1999, Office of Personnel Management issued final regulations that permitted “use or lose” annual leave to be restored to employees who were determined to be necessary for Y2K conversion efforts. Such employees had their excess annual leave restored without having to schedule the leave and it being canceled. Annual leave that was restored because of Y2K computer conversion exigency must be scheduled and used not later than the end of leave year 2002.