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Are Time Off Awards Transferable?

Published in Federal Benefits 2 mins read

No, generally time off awards are not transferable when an employee moves from one federal agency to another, unless a specific, special arrangement is made with the receiving agency.

Understanding Time Off Award Transferability Between Agencies

When an employee transitions from one government agency to a different one, the gaining agency is typically not obligated to recognize or "honor" any unused time-off awards that the employee accrued from their former agency. This means that, by default, these awards do not automatically carry over with the employee.

Key Considerations for Inter-Agency Transfers

  • Default Non-Transferability: The standard policy indicates that unused time-off awards do not transfer. This prevents new agencies from inheriting leave liabilities from an employee's previous federal employment without prior agreement.
  • Exception: Special Arrangements: An exception to this rule exists if the receiving agency formally agrees to honor the time-off award. Such an arrangement is not automatic and usually requires a specific agreement between the employee and the hiring agency, often evaluated on a case-by-case basis.

Practical Implications and Solutions for Employees and Agencies

Understanding this policy is crucial for both employees contemplating a transfer and agencies recruiting from other federal entities.

  • For Employees:
    • Utilize Awards: It is often advisable for employees with significant unused time-off awards to use them before their effective transfer date from their current agency.
    • Proactive Inquiry: If retaining the award is critical, employees should inquire about the possibility of a special arrangement with the gaining agency early in the recruitment process.
  • For Agencies:
    • Recruitment Tool: In highly competitive recruitment scenarios, especially for critical positions or talent, a gaining agency may consider honoring a portion or all of a time-off award as an incentive. This decision remains at the discretion of the gaining agency.
    • Clear Documentation: If a special arrangement is made to honor a time-off award, it is imperative to have this agreement clearly documented in writing by both the former and gaining agencies to prevent future misunderstandings.

Summary of Time Off Award Transferability

To provide a clear overview of the conditions for time off award transferability:

Scenario Transferable? Notes
Employee transfers to a new agency No The gaining agency is not obligated to honor awards from a former agency.
Special arrangement is made Yes Requires an explicit, formal agreement from the receiving agency.

Understanding these nuances helps both parties manage expectations regarding time off awards during transitions between federal agencies.