University Policy
Title
University of North Carolina at Chapel Hill Policy on Voluntary Shared Leave (VSL)
Introduction
Purpose
The purpose of the Voluntary Shared Leave (VSL) program is to provide income protection to employees of the University of North Carolina at Chapel Hill ("UNC-Chapel Hill" or "University") who experience a prolonged medical condition affecting themselves or an immediate family member and who have exhausted all available leave. Through donated leave, the program enables eligible employees avoid loss of income and benefits that would otherwise result from placement on leave without pay.
The VSL program enables employees across UNC-Chapel Hill, the UNC System, and other state agencies to donate leave to approved recipients, supporting them during periods of certified incapacity.
Scope
This policy applies to employees who are regularly scheduled to work at least 20 hours per week in the following appointment types; all of whom are eligible to participate in the Voluntary Shared Leave (VSL) program as both donors and recipients:
- EHRA Faculty (12-month) permanent employees;
- EHRA Non-Faculty permanent employees; and
- SHRA employees (including permanent, probationary, trainee, or time-limited appointments)
The following appointment types are not eligible to participate in the VSL program:
- EHRA Faculty (9-month) employees;
- Temporary employees;
- Postdoctoral fellows; and
- Student employees.
This policy applies to eligible UNC-Chapel Hill employees who experience a prolonged medically certified condition affecting themselves or an immediate family member and who have exhausted all available leave.
This policy does not apply to incidental, routine, and/or short-term medical conditions. In addition, the policy is not intended to circumvent operational needs or the requirement that assigned duties be performed, nor does it limit management’s rights, consistent with applicable leave laws and University policy, to deny a request for leave without pay.
Policy
In accordance with the Office of State Human Resources Policy on Voluntary Shared Leave (VSL), UNC-Chapel Hill has a VSL program for qualifying employees. An employee may donate leave, as outlined below, to an employee approved to receive VSL because of a medical condition affecting the employee or their immediate family that will require the employee’s absence for a prolonged period.
Qualifying Conditions for Voluntary Shared Leave
Eligibility for Voluntary Shared Leave is based on the existence of a qualifying prolonged medical condition affecting the employee or an immediate family member, as defined below. All other provisions in this policy describe how VSL may be applied once that condition is met.
Definition of Prolonged Medical Condition
A prolonged medical condition requires an employee’s continuous absence from work for at least twenty (20) consecutive workdays, except as otherwise provided under this policy.
Exception to the 20-Day Minimum Requirement
An exception to the 20-day requirement may be approved if:
- The employee has had previous random absences for the same condition that have resulted in excessive absences, or
- The employee has experienced a previous but different prolonged medical condition within the past twelve (12) months.
This exception applies only to the minimum duration requirement. It does not alter the requirement that Voluntary Shared Leave be used for a continuous leave of absence.
VSL may not be used on an intermittent or reduced-schedule basis.
Applicability
The prolonged medical condition may affect:
- The employee; or
- An immediate family member, as defined in this policy.
In all cases, a complete and sufficient medical certification from a licensed health care provider is required to support the request for VSL.
Use of VSL in Specific Leave Scenarios
When an employee has a qualifying prolonged medical condition, Voluntary Shared Leave may be applied in the following circumstances, subject to the limitations below.
Disability (Disability Income Plan of North Carolina - DIPNC)
Voluntary Shared Leave may be used:
- During the required disability waiting period; and
- After the waiting period and before DIPNC benefit payments begin.
Once an employee begins receiving DIPNC benefits, VSL may no longer be used.
Workers’ Compensation
Voluntary Shared Leave may be used:
- During the required Workers’ Compensation waiting period;
- To supplement Workers’ Compensation leave benefits after the waiting period, in accordance with applicable policy.
Pregnancy & Childbirth
Incapacity during pregnancy and the period of physical recovery following childbirth, when certified by a licensed health care provider, is considered a prolonged medical condition under this policy, provided all other Voluntary Shared Leave (VSL) eligibility requirements are met.
VSL is available to support employees during prolonged periods of medically certified incapacity. While an employee may be eligible for leave under the Family & Medical Leave Act (FMLA) for both recovery from childbirth and bonding with a child, VSL may only be used for the medically certified period of incapacity and may not be used for bonding or other non-medical purposes.
Non-Qualifying Conditions
Voluntary Shared Leave (VSL) does not apply to medical conditions that do not meet the definition of a prolonged medical condition as outlined in this policy.
VSL may not be used for intermittent, reduced-schedule, short-term, or sporadic absences, even if related to an ongoing or chronic medical condition.
Examples of non-qualifying conditions include, but are not limited to:
- Short-term or sporadic recurrence of chronic conditions (e.g., allergies, migraines, or similar conditions);
- Absences due to common or contagious illnesses that resolve within a short period of time;
- Recurring or routine medical or therapeutic treatments that do not require continuous leave; and
- Any condition that does not result in the employee being continuously absent from work for the required duration.
Each request is evaluated on a case‑by‑case basis to ensure consistency with the intent of this policy.
Approval
Approval for Voluntary Shared Leave (VSL) is not guaranteed. Each request is reviewed by the Leave Administration Team in the Office of Human Resources on a case‑by‑case basis, based on the qualifying condition, supporting medical documentation, and applicable policy requirements.
VSL may run concurrently with leave taken under the Family and Medical Leave Act (FMLA); however, VSL approval is limited to the medically certified period of incapacity and is not automatically extended to match the full duration of FMLA leave.
Employees who require additional leave beyond their approved VSL period must request recertification and provide updated medical documentation. Continued approval is subject to review and availability of shared leave.
Confidentiality
Employee medical information related to Voluntary Shared Leave (VSL) is confidential and will be handled in accordance with applicable privacy laws and University policy. When communicating about an approved VSL recipient, information disclosed to potential donors or others is limited to a general statement that the employee, or the employee’s immediate family member, has a qualifying prolonged medical condition.
VSL donations are also confidential. Donor identities are not disclosed by the University. Individual donors may choose to disclose their donations.
Intimidation or Coercion Prohibited
An employee may not intimidate, threaten, coerce, or attempt to intimidate, threaten, or coerce another employee for the purpose of interfering with that employee's rights relating to donating, receiving or using leave under this program. Such action may result in disciplinary action, up to and including dismissal.
Leave Bank Prohibited
The establishment of a leave “bank” for use by unnamed employees is expressly prohibited. Leave must be donated on a one-to-one personal basis.
Misuse of Leave
Misuse of Voluntary Shared Leave (VSL) is prohibited, including the provision of false or misleading information to obtain or use VSL. Such actions may result in disciplinary action, up to and including dismissal.
Limits on Use of Leave
Voluntary Shared Leave (VSL) may only be used for the purpose for which the employee was approved.
VSL is intended to cover the employee’s (or immediate family member’s) period of medical incapacity only. Once the certified medical condition no longer prevents the employee from working, eligibility for VSL ends. Leave taken for non-medical reasons (e.g., bonding following childbirth) is not covered under VSL.
An employee must exhaust all available accrued paid leave, as required by applicable policy, before using donated leave.
Employees who remain in pay status while using VSL continue to accrue vacation and sick leave in accordance with applicable University and state policies. Any accrued sick and vacation leave must be used before donated leave may be applied.
Recipient Leave Limits
Participation in the VSL program is limited to a maximum of 1,040 hours of donated leave (prorated for part-time employees) for a single qualifying reason. This limit applies across one or more approved periods of continuous leave for the same condition, whether taken consecutively or at different times.
Qualifying to Donate Leave
To donate Voluntary Shared Leave (VSL), an employee must meet the following criteria at the time of donation:
- Be an active employee (i.e., not separated from employment)
- Be in a position that earns leave; and
- Have sufficient leave balances, as outlined in this policy
Employees on Workers’ Compensation leave without pay (LWOP) may donate leave earned prior to going on LWOP, provided they were in active leave-earning status before the leave and otherwise meet eligibility requirements. Leave does not accrue during LWOP and may not be donated until the employee returns to active status.
Employees exempt from the Human Resources Act (EHRA) may participate only if they are in positions with leave-earning and reporting requirements comparable to those of SHRA employees. Paid Time Off (PTO) programs are not considered comparable.
Donations to a Non-Family Member
Employees may donate leave to non-family members as follows;
Vacation and Bonus Leave
- Employees may donate vacation or bonus leave to another employee at UNC-Chapel Hill, another UNC institution, or any state agency.
- Employees may donate vacation or bonus leave to a coworker’s immediate family member who is employed by a public school or community college, provided the employee and coworker are both employed by the same organization. This includes sick leave.
Sick Leave
Employees may donate sick leave to a non-family member subject to the following limitations:
- A donor may contribute no more than five (5) days of sick leave per year to any one non-family-member recipient.
- The combined total of sick leave donated to a recipient by non- family members may not exceed twenty (20) days per calendar year.
- Donated sick leave may not be used for retirement service credit.
Donation to Family Member
An employee of UNC-Chapel Hill may donate vacation, bonus, or sick leave to an immediate family member employed by UNC-Chapel Hill, another UNC institution, a public school, a community college, or another state agency. This includes family members who are on leave without pay.
The following rules apply to immediate family member donations:
- An employee may donate up to a maximum of 1,040 hours of leave, provided the employee’s sick leave balance is not reduced below 40 hours.
- After a vacation leave donation, the donor must retain a balance of at least one-half of the employee’s annual vacation leave accrual amount.
Limits on Leave Donations
Vacation and Bonus Leave
- The minimum donation is four (4) hours.
- A donor may not donate more vacation leave (annual or personal) than the amount they accrue annually; and
- After donation, the donor must maintain a vacation leave balance of at least one-half of their annual accrual.
- Example: An SHRA employee who earns 9.33 hours of vacation leave per month accrues 111.96 hours per year. The employee may not donate more than 55.98 hours of vacation leave and must have a vacation leave balance of at least 55.98 hours after the donation.
- Bonus leave may be donated without regard to the limitations placed on vacation leave.
Sick Leave
- The minimum donation is four (4) hours.
- A donor may not donate more than 1,040 hours of sick leave .
- A donor must retain a minimum sick leave balance of forty (40) hours after donation.
Retirement Service Credit Impacts
Employees who donate sick leave and are members of the Teachers’ and State Employees’ Retirement System (TSERS) should be aware that unused sick leave may be used toward retirement service credit. Donated sick leave cannot be restored and will not be available for retirement credit. Employees are encouraged to consider this impact before donating sick leave.
Administering Shared Leave
During and after the approved Voluntary Shared Leave (VSL) period:
- Donated leave may be used immediately or applied retroactively, up to 60 calendar days from the date the leave is received, to replace advanced vacation or sick leave or leave without pay; however, it must first be applied to repay any advanced leave before being used to cover periods of leave without pay.
- Leave should be credited to the employee’s VSL balance and used in alignment with the approval.
- Each department is responsible for the accuracy of donor and recipient leave records and Employee Time Records.
- Accrual and use of shared leave will be recorded and tracked by the department’s HR Time Information Management System (TIM) Administrator.
- Participation in the VSL program does not alter an employee’s eligibility for or application of other leave policies.
- Each department is responsible for initiating a Change Employment Status ePAR in Connect Carolina when a shared leave recipient exhausts all leave and must be placed in leave without pay status.
- The department is responsible for notifying the Leave Administration Team of any concerns related to leave tracking or eligibility.
- The Leave Administration Team may require reports from the employee at reasonable intervals (generally 30 calendar days or more) regarding their status and intent to return to work.
- Shared leave ends when the medical necessity, as supported by appropriate documentation, concludes, regardless of the employee’s return-to-work status.
Return to Work
An employee should notify their supervisor in writing if they will not be returning from leave as planned. Failure to report back to work at the end of the scheduled leave may be considered a voluntary resignation. If deemed necessary, the Leave Administration Team may revoke the continuation of any previously approved shared leave.
The Leave Administration Team may require additional medical certification, as provided above, to verify that the employee is able to return to work and perform the essential functions of the position.
VSL at the End of the Medical Condition
Any unused leave at the expiration of the medical condition for which Voluntary Shared Leave (VSL) was approved, as determined by the University, will be treated as follows:
- The recipient’s Sick Leave account balance cannot exceed a total of 40 hours (prorated for part-time employees).
- Any additional unused donated leave must be returned to active donor(s) (working or on leave without pay) on a pro-rata basis and credited to the leave account from which it was donated.
- Fractions of one hour will not be returned to donors.
- Donations from individuals who are no longer permanent leave-earning employees will be forfeited.
Recipient Separation or Transfer
Participation in the Voluntary Shared Leave (VSL) program ends if a recipient separates from State employment due to resignation, retirement, or death.
If a recipient separates or transfers to another State agency, any unused donated leave will be returned to the active donor(s) (working or on an LWOP status) on a pro‑rata basis and credited to the same leave account from which it was donated.
Employees who transfer to another State agency must submit a new VSL request and obtain approval from the receiving agency before receiving additional shared leave.
Definitions
- Recipient: Employee approved to receive leave donations.
- Donor: Employee approved to donate leave.
- Immediate Family Member:
- Spouse (husband or wife);
- Parent (biological, adoptive, or person who stood-in as “parent”);
- Child (biological, adopted, legal ward, foster care, or person for whom employee stands in as “parent”);
- Sibling (biological or adoptive);
- Grandparents;
- Great-Grandparents;
- Grandchildren;
- Great-Grandchildren;
- Step-, Half-, and In-law relations of the above; and
- Other dependents living in the household.
Note: Employees may be required to provide reasonable documentation to verify the relationship to an immediate family member to determine eligibility under this policy.
Related Requirements
External Regulations and Consequences
University Policies, Standards, and Procedures
Contact Information
OHR Leave Administration Team
Email: leave@unc.edu
Phone: 919-962-3071
Fax: 919-962-6010