Pay for Vacation Allowance Upon Separation. Whenever a separation of services takes place, the Employee is to be paid, in accordance with law, for the Employee's vacation allowance either in a lump sum or in the normal manner except as provided in section X.
Pay for Vacation Allowance Upon Separation. 1. Whenever a separation of services takes place, the Employee is to be paid, in accordance with law, for the Employee's vacation allowance either in a lump sum or in the normal manner except as provided in subsection 2.
2. When payment in a lump sum is made, the sum payable for vacation allowance shall be equal to the amount of compensation to which the Employee would be entitled or which the Employee would be allowed during the vacation period if the Employee were permitted to take the Employee's vacation in the normal manner. It is provided that whenever an Employee is discharged for cause the lump sum vacation allowance payable shall be computed on the basis of the Employee's accumulated vacation hours multiplied by the Employee's hourly rate of pay as of the effective date of discharge.
3. However, if the Employee is immediately rehired by the Employer and will continue to earn vacation allowance, such a payment shall not be made.
4. An Employee who, pursuant to the U.S. Universal Military Service and Training Act or other Federal statute is called or ordered and reports either voluntarily or involuntarily for active military duty with a branch of the U.S. Armed Forces shall be deemed to have terminated the Employee's services for the purposes of this Article. The Employee's choice of lump sum payment for the Employee's vacation allowance will not of itself cause the forfeiture of the Employee's unused sick leave credits.
