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If you are dismissed (sacked) or resign from your job, you should be paid any annual leave that you haven't taken. Usually, you will be paid before your last day or on the next scheduled payday.
Workers may be entitled to receive compensation for any unused vacation time after they quit. In some states, workers forfeit their unused paid time off (PTO) when they separate from the company. In other states, including California, employers must pay out any unused vacation time immediately upon termination.
To summarize2026in New York State, if an employee has earned unused vacation time, and there is no written forfeit policy, then the employer should pay the employee for the earned unused vacation time upon resignation or termination.
Use Your PTO or Other Benefits Before giving notice of your resignation, make sure you make the most of your employer-provided benefits. Some companies will pay out accrued vacation and sick days upon leaving the company, but others will not.
To summarize2026in New York State, if an employee has earned unused vacation time, and there is no written forfeit policy, then the employer should pay the employee for the earned unused vacation time upon resignation or termination.
Because employers in New York are not legally required to offer paid vacation, they have complete discretion in establishing a vacation policy. Those that offer paid vacation, however, may be required to pay unused vacation pay when the employment relationship ends, whether voluntarily or involuntarily.
If the employer pays out the notice period, the employee's employment ends on the date that payment in lieu of notice is made. In that case, the employee doesn't stay employed during the notice period (or continue to accrue entitlements, such as annual leave).
Generally, upon resignation or dismissal, an employee is entitled to be paid the notice pay where applicable, salary up to last day worked, plus any outstanding leave pay.
Yes, most states in the U.S. let employers refuse to pay departing employees for any unused PTO they have accumulated. However, employers in these states must pay unused PTO if they promised to do so in their vacation policy or PTO accrual rules.