5.1 Annual Leave

A merit system employee may accumulate annual leave.

An eligible employee begins accumulating annual leave upon hire at a rate in proportion to the number of hours paid and based on total years of service in a merit system position at NKY Health as follows:

Years of Service     Per Pay Period        Per 12-Month Period

0 to 5 years             4.2 hours                 109.2 hours

5 to 10 years           5.3 hours                 137.8 hours

10 to 15 years         6.3 hours                 163.8 hours

15 to 20 years         7.3 hours                 189.8 hours

More than 20 years 8.4 hours                 218.4 hours

A full-time employee may accumulate annual leave based on her/his years of service in a merit system position at NKY Health as follows:

Years of Service                 Maximum Annual Leave Allowed to Accumulate

0 to 5 Yrs.                           253.10 Hours

5 to 10 Yrs.                         312.20 Hours

10 to 15 Yrs.                       379.70 Hours

15 to 20 Yrs.                       438.80 Hours

Over 20 Years                     506.30 Hours

A part-time employee may accumulate a prorated amount of annual leave based on the hours she/he is scheduled to work in an average pay period.

On the second pay date in October each year, any annual leave hours over the maximum allowable accumulation will be subtracted from the employee’s annual leave balance and added to the employees sick leave (see section 5.2) balance.

A merit system employee may not receive pay in lieu of using annual leave.

Accumulated, unused annual leave will be paid under any of the following conditions:

1. Upon becoming ineligible to accumulate annual leave

2. Upon retirement

3. Upon separation from employment when the employee has completed an initial Introductory Period (see section 2.9 ) with NKY Health

4. Upon use of leave

The maximum amount of annual leave that may be paid out to a merit system employee at one time is the same as the maximum amount of annual leave that she/he may accumulate (see section 5.1.1.2.)

Annual leave will be paid at the employee’s rate of pay at the time the leave is paid out.

An employee who becomes ineligible to continue to accumulate annual leave must forfeit any accumulated annual leave above the maximum allowable payout (see section 5.1.5.)

A merit system employee who has completed an initial Introductory Period (see section 2.9 ) with NKY Health may donate accumulated annual leave to any other merit system employee eligible to receive sick leave donations (see section 5.2.5.1) to be used as sick leave (see section 5.2) in the current or future payroll.

Any donated leave must be in .25 hour increments is deducted from the donor’s annual leave balance and added to the recipient’s sick leave balance.

Donors and recipients are responsible for tax consequences, if any, associated with giving/receiving donations. (See Leave Donation Procedures.)

An employee must not work for NKY Health during the same hours she/he is using annual leave.