(a) The head or chief of each police department shall:
(1) Grant each employee annual vacation leave of not less than fifteen (15) working days with full pay; and
(2) Approve the use of annual vacation leave before the annual vacation leave is used.
(b) Unused annual vacation leave may accumulate to a maximum allowance as determined by ordinance of the municipality.
(c) Upon the first day after the end of the term of service or retirement, an employee may be paid for his or her unused accumulated vacation leave at the employee's regular rate of pay, not to exceed the maximum allowance under ordinance of the municipality.