Texas or federal law requires employers to make payouts of accrued but unused paid leave, although in rare instances, usually involving express contracts, some courts have required such payments to former employees.
That is a matter left to employers to specify in their company policies. Thus, it is very important for employers to develop a clear, preferably written, policy regarding paid leave and follow it exactly. If the policy is silent on what happens to accrued, untaken leave, it is not enforceable under the Texas Payday Law. An example of a policy that clearly states a company's position would be as follows:
Generally, ABC Company does not pay accrued (type of) leave to employees who leave employment. Any unused paid (type of) leave is forfeited upon an employee's work separation. However, unused (type of) leave may be paid out under the following circumstances:
1.If an employee is involuntarily separated from employment for economic reasons as part of a company reorganization or a reduction in the workforce, the employee will receive the full balance of accrued, but unused (type of) leave.
2.If an employee retires from employment pursuant to the Company's retirement policy, the employee will receive the full balance of accrued, but unused (type of) leave.
3.If an employee voluntarily resigns from employment with at least two weeks' advance written notice, the employee will receive the full balance of accrued, but unused (type of) leave.
4.If an employee voluntarily resigns from employment with less than two weeks' notice, but with at least one week's advance written notice, the employee will receive fifty percent (50%) of the balance of accrued, but unused (type of) leave.
http://www.twc.state.tx.us/news/efte/vacation_and_sick_leave.html