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Frequently Asked Questions Pay & Leave

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

An agency may unilaterally terminate a recruitment or relocation incentive service agreement based solely on the management needs of the agency.  For example, an agency may terminate a service agreement when the employee’s position is affected by a reduction in force, when there are insufficient funds to continue the planned incentive payments, or when the agency assigns the employee to a different position (if the different position is not within the terms of the service agreement). In such cases, the employee is entitled to all incentive payments attributable to completed service and to retain any portion of an incentive payment already received that is attributable to uncompleted service. 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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