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Frequently Asked Questions Pay & Leave

Under what circumstances must an agency terminate an employee’s recruitment or relocation service agreement, and what are the consequences of terminating the agreement?

An agency must terminate a service agreement if an employee is demoted or separated for cause (i.e., for unacceptable performance or conduct), receives a rating of record lower than "Fully Successful" or equivalent during the service period, or otherwise fails to fulfill the terms of the service agreement.  In such cases, the employee must repay any portion of the incentive attributable to uncompleted service.  (See 5 CFR 575.111(h) and 575.211(h) for a repayment waiver authority.)  The employee is entitled to retain any incentive payments attributable to completed service.  Exception:  When the employee is separated as a result of material false or inaccurate statements or deception or fraud in examination or appointment, or as a result of failing to meet employment qualifications, the employee must repay all recruitment incentives received under that service agreement.  The agency is not obligated to pay the employee any outstanding incentive payment attributable to completed service unless such payment was required under the terms of the service agreement.  An agency must notify an employee in writing when it terminates a recruitment or relocation incentive service agreement.  (See 5 CFR 575.111 and 575.211.)

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